Ethereum's Strong Q3 Rally Masked by Thinning Liquidity
Ethereum's native token, ether (ETH), delivered a strong performance in the third quarter of 2026, surging nearly 70%. This outpaced Bitcoin's (BTC) roughly 42% gain, according to a CoinGecko analysis cited by CoinDesk on October 5, 2026. The data covers the period from July 6 to September 30, showing ETH's price outpacing BTC by close to 28 percentage points.
Despite the impressive price rally, ETH's order books thinned out significantly. The median daily market depth within ±0.15% of the mid-price for ETH now sits at only 35% to 45% of Bitcoin's equivalent level, down from at least 60% in the comparable period of 2025. In absolute terms, ETH's depth averaged around $13 to $14 million across major exchanges, with most venues maintaining over $1 million in depth on both the bid and ask sides.
The analysis suggests that the rally was driven by returning inflows into US spot ETH ETFs, which reached approximately $3.1 billion after earlier outflows. However, ETF demand does not necessarily add depth to exchange order books. Thinner books mean higher slippage, making big ETH orders more likely to push the market around. This could require desks to split trades into smaller pieces or stretch them out over time.
Ethereum is not alone in this trend. Solana showed a similar decline in liquidity, while XRP's total depth held steady, with a tilt toward buyers. The research raises questions about whether market makers are concentrating their capital more heavily in BTC. Ether closed the quarter near $2,689, while Bitcoin ended between $83,640 and $86,000.