Ethereum's 70% Rally Not Enough to Boost Liquidity

Ethereum's price surged 70% in the third quarter, outpacing Bitcoin's 42% gain, but the market's liquidity took a hit, falling to 35%-45% of Bitcoin's. According to CoinGecko, Ethereum's median daily market depth from July 6 to September 30 was significantly lower than the same period last year. Market depth measures the total value of buy and sell orders placed within a set range around the current price, and a shallower market depth can lead to bigger price swings. Ethereum's market depth within a ±0.15% range of the current price was estimated at $13 million to $14 million, but most exchanges maintained more than $1 million in market depth on both the bid and ask sides.

Other cryptocurrencies also saw a decline in market depth. Solana's market depth within a ±2% range of the current price fell to about $20 million this year from roughly $28 million last year. By contrast, XRP's total market depth remained relatively stable at about $30 million, with thicker liquidity on the bid side.