Crypto
Ether Outperforms Bitcoin But Liquidiy Drops in Q3
In the third quarter of the year, Ether outperformed Bitcoin in terms of price growth, but this surge came with a notable decline in liquidity. Data from CoinGecko revealed that between July 6 and September 30, Ether's market depth dropped to 35-45% of Bitcoin's, signaling a weakening liquidity position.
The decline in liquidity wasn't limited to Ether. Solana (SOL) also experienced a reduction in market depth, while XRP showed stronger buying activity during the reviewed period, maintaining a more robust liquidity profile.
The data suggests that despite Ether's strong price performance in Q3, the market depth did not expand significantly, indicating that the rally might not have been as deeply supported as some might hope.