No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Saturday, October 25, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Cryptocurrency

Crypto liquidity lags behind traditional finance despite market efficiency gains – S&P Global

by TheAdviserMagazine
5 months ago
in Cryptocurrency
Reading Time: 2 mins read
A A
Crypto liquidity lags behind traditional finance despite market efficiency gains – S&P Global
Share on FacebookShare on TwitterShare on LInkedIn



Liquidity in crypto markets continues to lag behind traditional finance due to fragmentation, technical design differences, and exposure to external shocks, according to a new report from S&P Global.

The study analyzed key liquidity metrics, volume, bid-ask spreads, market depth, and slippage, across centralized and decentralized trading venues for Bitcoin (BTC), Ethereum (ETH), and major stablecoins.

The report showed that crypto trading platforms are becoming more efficient but remain fractured across hundreds of markets, with liquidity profiles varying by exchange, asset pair, and trade size.

Spot trading volumes on exchanges like Binance still fall well short of traditional venues like the NYSE, and fiat-based trading pairs consistently exhibit shallower order books compared to crypto-native pairs.

CEX vs. DEX

Centralized exchanges (CEXs) mirror traditional stock markets in their reliance on order books and custodial accounts. They offer high speed and low spreads on popular stablecoin pairs, especially large-cap coins like Bitcoin.

In contrast, decentralized exchanges (DEXs) allow users to maintain custody through automated market makers (AMMs) but introduce price slippage and impermanent loss, especially during volatile periods or large trades.

Despite these challenges, some digital assets, particularly BTC, ETH, and USDT, show comparable or even narrower bid-ask spreads than mid-cap equities like Broadcom.

Overall, CEXs continue to dominate volume in the market and provide higher liquidity compared to their decentralized counterparts, which provide deeper access.

The report also noted that the launch of Bitcoin and Ether ETFs in the US has increased trading activity and deepened liquidity on crypto exchanges, though ETF trading volumes remain smaller than their underlying assets.

Infrastructure constraints

S&P also highlighted how political instability and exchange hacks can significantly impact localized liquidity, a prevalent issue in the crypto industry.

A political crisis in South Korea triggered a 30% drop in BTC-KRW pricing on Upbit in December 2024, while a February breach at Bybit led to a sustained decline in ETH trading volume. These disruptions underline the fragility of fragmented order books.

The report also highlighted that stablecoin liquidity remains higher in crypto-to-crypto trades than in fiat pairs, due to banking hurdles and compliance friction. However, their growth combined with easing regulations could enforce their role in finance.

Meanwhile, slippage analysis on Uniswap shows that low-volatility stablecoin pairs maintain near-zero slippage, while ETH pairs can show high variation, especially during sharp price moves.

According to the report, while crypto market liquidity is maturing with the entry of institutional investors and regulated products, fragmentation, design limitations, and inconsistent depth continue to hinder full-scale efficiency.

Mentioned in this article

Posted In: Bitcoin, Ethereum, Uniswap, Binance, Analysis, Crypto, DEX, Exchanges, Featured, Market, Trading
Latest Alpha Market Report



Source link

Tags: CryptoEfficiencyfinancegainsGloballagsLiquiditymarkettraditional
ShareTweetShare
Previous Post

3M will pay up to $450 million for drinking-water contamination from ‘forever chemicals’

Next Post

Renk – R3NK: Wie lange geht der Rüstungsboom weiter?

Related Posts

edit post
White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC

White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC

by TheAdviserMagazine
October 25, 2025
0

White House crypto czar David Sacks has shown his support for Donald Trump’s nomination of SEC crypto counsel Michael Selig...

edit post
UK crypto investors face crackdown on unreported gains 

UK crypto investors face crackdown on unreported gains 

by TheAdviserMagazine
October 25, 2025
0

For years, many UK crypto holders have flown under the HMRC tax authority’s radar. They convinced themselves that digital assets...

edit post
Bitcoin Liquidity Hits Seven-Year Low As Accumulators Stack 373,700 BTC In A Month

Bitcoin Liquidity Hits Seven-Year Low As Accumulators Stack 373,700 BTC In A Month

by TheAdviserMagazine
October 25, 2025
0

Bitcoin (BTC) liquidity is drying up fast, as the metric recently hit a seven-year low, reaching around 3.12 million BTC,...

edit post
Custodia and Vantage Deliver Tokenization Directly Inside Everyday Banking Systems

Custodia and Vantage Deliver Tokenization Directly Inside Everyday Banking Systems

by TheAdviserMagazine
October 25, 2025
0

U.S. regional banks are charging into a new era of digital finance with a powerful blockchain breakthrough that merges traditional...

edit post
Bank of England Probes Data Mining Lending Fueling AI Bets

Bank of England Probes Data Mining Lending Fueling AI Bets

by TheAdviserMagazine
October 24, 2025
0

The Bank of England is investigating the rise of financiers lending to data centers as a way to speculate on...

edit post
Trump taps Michael Selig to lead CFTC: Bloomberg

Trump taps Michael Selig to lead CFTC: Bloomberg

by TheAdviserMagazine
October 24, 2025
0

Key Takeaways President Trump has appointed Michael Selig as the new chair of the CFTC, signaling a pro-crypto stance. The...

Next Post
edit post
Renk – R3NK: Wie lange geht der Rüstungsboom weiter?

Renk – R3NK: Wie lange geht der Rüstungsboom weiter?

edit post
10 Fast Growing Stocks For Serious Dividend Compounding

10 Fast Growing Stocks For Serious Dividend Compounding

  • Trending
  • Comments
  • Latest
edit post
77-year-old popular furniture retailer closes store locations

77-year-old popular furniture retailer closes store locations

October 18, 2025
edit post
Pennsylvania House of Representatives Rejects Update to Child Custody Laws

Pennsylvania House of Representatives Rejects Update to Child Custody Laws

October 7, 2025
edit post
What to Do When a Loved One Dies in North Carolina

What to Do When a Loved One Dies in North Carolina

October 8, 2025
edit post
Probate vs. Non-Probate Assets: What’s the Difference?

Probate vs. Non-Probate Assets: What’s the Difference?

October 17, 2025
edit post
California Attorney Pleads Guilty For Role In 2M Ponzi Scheme

California Attorney Pleads Guilty For Role In $912M Ponzi Scheme

October 15, 2025
edit post
Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

October 9, 2025
edit post
China’s rare golden monkeys debut at European zoos, possible successor to ‘panda diplomacy’

China’s rare golden monkeys debut at European zoos, possible successor to ‘panda diplomacy’

0
edit post
China’s rare earth limits may have ‘gone too far this time’ as US trade talks start

China’s rare earth limits may have ‘gone too far this time’ as US trade talks start

0
edit post
Popular investing strategy losing appeal with stocks at record finding

Popular investing strategy losing appeal with stocks at record finding

0
edit post
Why Southwest stock is down while American Airlines is soaring

Why Southwest stock is down while American Airlines is soaring

0
edit post
2025 List of All 46 Energy Stocks Now From Major Energy ETFs

2025 List of All 46 Energy Stocks Now From Major Energy ETFs

0
edit post
Another Violent Outburst – Democrats Inciting Civil Unrest

Another Violent Outburst – Democrats Inciting Civil Unrest

0
edit post
China’s rare earth limits may have ‘gone too far this time’ as US trade talks start

China’s rare earth limits may have ‘gone too far this time’ as US trade talks start

October 25, 2025
edit post
China’s rare golden monkeys debut at European zoos, possible successor to ‘panda diplomacy’

China’s rare golden monkeys debut at European zoos, possible successor to ‘panda diplomacy’

October 25, 2025
edit post
Why Southwest stock is down while American Airlines is soaring

Why Southwest stock is down while American Airlines is soaring

October 25, 2025
edit post
White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC

White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC

October 25, 2025
edit post
Popular investing strategy losing appeal with stocks at record finding

Popular investing strategy losing appeal with stocks at record finding

October 25, 2025
edit post
How Many Dimes Are In 5 Dollars?

How Many Dimes Are In 5 Dollars?

October 25, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • China’s rare earth limits may have ‘gone too far this time’ as US trade talks start
  • China’s rare golden monkeys debut at European zoos, possible successor to ‘panda diplomacy’
  • Why Southwest stock is down while American Airlines is soaring
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.