A report by Kaiko shows that 72% of the Ethereum liquidity market share is concentrated in 5 crypto exchanges. ETH balances on exchanges also recently hit a 5-year low.
Reports indicate that the 5 major crypto exchanges are holding up to 72% of the Ethereum liquidity market share. Digital asset data provider Kaiko published a report on May 29 showing that this percentage of ETH liquidity is “in the hands” of Binance, Bitfinex, OKX, Coinbase, and Kraken.
FTX Collapse Makes Market Share of ETHEREUM Concentrate in the Hands of the “Big Guys”
These are the largest cryptocurrency exchanges in the world, it’s no surprise that ETH’s liquidity concentration is high, but analysts are skeptical about the fact that the number is as large as it is. So. The reserve wallets of other exchanges, a total of 41 wallets, account for only 28% of ETH’s liquidity.
Kaiko claims that the liquidity market share has shifted to these exchanges due to the collapse of FTX. The platform emphasized that “since the crash of FTX last year, there has been little good news in terms of liquidity for crypto assets.”
Kaiko also explained that the liquidity market share is leaving the US. The data for domestic market depth is around 40%, down from a peak of 54% in May 2022. The data provider believes that it is possible that the concentration of liquidity will continue in some exchanges for all assets, not just ETH.
STABLECOINS EXPRESS RECOVERY IN THE CONCEPT OF U.S. Public Debt Ceiling Lift
Kaiko also briefly mentioned the state of stablecoins in the crypto market. The platform noted that the two largest stablecoins, USDT and USDC, ended trading for the week with slight gains.
Of particular note is that there is very little volatility for these stablecoins. However, stablecoins once rallied strongly when Binance halted BTC withdrawals in May.
Kaiko stated that discussions about the US debt ceiling negotiations are about to be resolved with no impact on stablecoin prices. This shows that the stablecoin has reached a safe state.
ETHEREUM BALANCES ON EXCHANGES TOUCH LOWEST IN 5 YEARS
Meanwhile, Ether balances on exchanges have bottomed out in five years, which usually represents investors’ confidence in the asset’s long-term growth. There are approximately 17,882 million ETH on centralized exchanges, representing 14% of the total supply.
At the same time, ETH staking deposits have also reached new ATH levels. Ethereum’s Shapella upgrade allows for withdrawal of ETH staking and helps drive adoption and asset prices. This cryptocurrency is currently trading at around $1,900.