Coinbase Stock Tokens Reveal Thin Liquidity Despite $1 Billion Volume

Coinbase's stock tokens on Base have seen significant trading volume of $1.02 billion, but recent tests reveal thin liquidity in certain scenarios.

A simulated sell order routing test on September 23 found that larger orders resulted in discounts of up to 0.71% compared to KyberSwap's estimated token values.

The test covered ten stock tokens and included buy-and-sell routes worth around $100,000 each. Estimated proceeds from selling were between 0.06% and 0.71% below the tokens' estimated values, while smaller orders of $10,000 showed gaps of 0.01% to 0.12%.

The results indicate that liquidity providers can receive significant discounts when selling large amounts of stock tokens during periods of low trading activity.