Report from Kaiko’s Quarterly Market Report shows that digital assets are either experiencing dampened activity or they’ve reached maturity.
The crypto market has slowly paused its violent volatility as the fourth quarter of the year begins. Monetary policies, fluctuating liquidity, and a conservatively hopeful market as seen Bitcoin and altcoins stuck within range.
Crypto volatility slows
In the last quarter, crypto volatility decreased reaching a new low in years by the end of September. Since the downfall of major crypto firms like Terra, Celsius, Three Arrows Capital, in mid-2022, the market has experienced a fall in volatility.
Report from Kaiko’s Quarterly Market Report shows that digital assets are either experiencing dampened activity or they’ve reached maturity.
Bitcoin Volatility Index which quantifies the daily variation in Bitcoin price noted that the last 30 days have seen BTC drop to levels not seen since March 2019 to 0.5%.
Kaiko emphasized that the market also seems to be headed for a higher concentration of liquidity.
Read more: Bitcoin starts October with a 5% surge — Happy Uptober?
According to data, Binance now makes up an astounding 64.3% of all trade volume and 30.7% of the worldwide market depth. The fact that the top eight cryptocurrency exchanges control more than 90% of the market depth and 89.5% of the trading volume brings this into closer perspective.
“Liquidity concentration is a natural phenomenon that ultimately benefits individual traders, giving them better prices for their orders,” Kaiko said in its report. “However, because crypto markets by nature emphasize decentralization, liquidity concentration, especially on centralized exchanges, is worrying.”
Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
