{"id":16754,"date":"2024-09-06T14:51:48","date_gmt":"2024-09-06T11:51:48","guid":{"rendered":"https:\/\/forklog.com\/en\/ethereum-market-depth-declines-20-following-spot-etf-launch\/"},"modified":"2024-09-06T14:51:48","modified_gmt":"2024-09-06T11:51:48","slug":"ethereum-market-depth-declines-20-following-spot-etf-launch","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/ethereum-market-depth-declines-20-following-spot-etf-launch\/","title":{"rendered":"Ethereum Market Depth Declines 20% Following Spot ETF Launch"},"content":{"rendered":"

Since the launch<\/a> of spot Ethereum ETFs in the US, the average 5% market depth for ETH pairs on domestic centralized exchanges has decreased by 20%, to approximately $14 million, according to CoinDesk<\/a>, citing CCData.<\/p>\n

In other words, it has become easier to move the spot price by 5% in either direction, indicating reduced liquidity and increased sensitivity to large orders.<\/p>\n

On foreign CEX<\/span>, the figure fell by 19% to around $10 million.<\/p>\n

Theoretically, the launch of exchange-traded funds should positively impact the liquidity of the underlying asset, experts noted. This was the case with Bitcoin, but the trend did not hold for ETH.<\/p>\n

\"BT7DSDEG4VGVDKOWRFHI6DK3PM\"
Data: CCData.<\/figcaption><\/figure>\n

CCData analyst Jacob Joseph noted that liquidity in ether pairs remains above early-year levels. However, since its peak in June, the indicator has fallen by 45%.<\/p>\n

\n

\u201cThis is likely due to unfavorable market conditions and the seasonal effect of summer, which is often accompanied by reduced trading activity,\u201d he added.<\/p>\n<\/blockquote>\n

According to SoSoValue<\/a>, from the start of trading in late July to September 5, spot Ethereum ETFs recorded a cumulative outflow of $562.3 million. The trend is driven by fund withdrawals from Grayscale’s product, with the total volume already reaching $2.66 billion.<\/p>\n

\"SoSoValue-Advanced-AI-Powered-Crypto-Investment-Research-Platform-Google-Chrome\"
Data: SoSoValue.<\/figcaption><\/figure>\n

The combined value of assets under management in exchange-traded ETH funds amounts to $6.49 billion, or 2.28% of Ethereum’s market capitalization.<\/p>\n

By the end of August, the cryptocurrency’s price had dropped by 22%, outpacing Bitcoin’s decline of 8.6%, analysts at QCP Capital noted. They predict the correction may continue into September.<\/p>\n

Earlier, 1confirmation founder Nick Tomaino suggested that within the next five years, Ethereum could surpass digital gold<\/a> in market capitalization.<\/p>\n

Meanwhile, ether’s price relative to Bitcoin has fallen by 44% since the transition to the Proof-of-Stake consensus algorithm in September 2022, according to CryptoQuant.<\/p>\n","protected":false},"excerpt":{"rendered":"

Since the launch of spot Ethereum ETFs in the US, the average 5% market depth for ETH pairs on domestic centralized exchanges has decreased by 20%, to approximately $14 million, according to CoinDesk, citing CCData. In other words, it has become easier to move the spot price by 5% in either direction, indicating reduced liquidity […]<\/p>\n","protected":false},"author":1,"featured_media":16753,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[569,46,1145],"class_list":["post-16754","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-etf","tag-ethereum","tag-market-analysis"],"aioseo_notices":[],"amp_enabled":true,"views":"15","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/16754","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=16754"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/16754\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/16753"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=16754"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=16754"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=16754"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}