According to CoinDesk: Bitcoin Cash (BCH), an offshoot of Bitcoin (BTC), has shown the most significant improvement in market liquidity during Q3, surpassing both Bitcoin and Ethereum, reports Kaiko, a Paris-based crypto data provider. This could be of interest to crypto traders looking for alternative cryptocurrencies (altcoins).
Liquidity in the market context refers to its ability to accommodate large buy and sell orders while maintaining stable prices. High liquidity is desirable since it minimizes slippage, the discrepancy between the expected and the actual executed price, and facilitates the execution of large orders.
Kaiko ranks cryptocurrencies based on factors such as market depth, bid-ask spread, and volumes from "tradable" exchanges. In general, the crypto market witnessed a decline in liquidity since Alameda Research's collapse in November last year.
However, Bitcoin Cash's market liquidity improved by over 10% compared to Q2, outperforming prominent altcoins and Bitcoin itself. BCH prices depreciated 23% to $234 in Q3 following a 145% surge in Q2. BCH, the 17th largest cryptocurrency by market cap, can be traded on major centralized exchanges such as Binance, Coinbase, Bitstamp, and the institutionally backed EDX Markets.
Other cryptocurrencies that registered improved liquidity conditions include Stellar's XLM, TRON's TRX, and Ethereum Classic (ETC). In contrast, Bitcoin, Ether (ETH), XRP, and Dogecoin (DOGE) saw no change, whereas BNB, OKB, and Toncoin (TON) experienced decreased liquidity.
Bitcoin continues to be the most liquid cryptocurrency, reinforcing its status as the market's safe haven.
