{"id":27587,"date":"2020-08-22T16:35:23","date_gmt":"2020-08-22T13:35:23","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=27587"},"modified":"2025-08-26T21:51:15","modified_gmt":"2025-08-26T18:51:15","slug":"investor-compares-eth-usd-liquidity-on-centralized-and-decentralized-exchanges","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/investor-compares-eth-usd-liquidity-on-centralized-and-decentralized-exchanges\/","title":{"rendered":"Investor compares ETH\/USD liquidity on centralized and decentralized exchanges"},"content":{"rendered":"<p>Investor Andrew Kang compared the liquidity of the ETH\/USD pair on several centralized and decentralized (DEX) exchanges. He assessed the amount of liquidity required to move the price by 2%. According to his calculations, many DEXs already rival their centralized counterparts.<\/p>\n<p><!--more--><\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">Chart: +2% Depth of most liquid ETH\/USD market of each exchange<\/p>\n<p>DEXs are now clearly starting to give CEXs a run for their money<a href=\"https:\/\/twitter.com\/1inchExchange?ref_src=twsrc%5Etfw\">@1inchExchange<\/a> even has deeper ETH liquidity than multiple Tier 1 &#038; 2 exchanges <a href=\"https:\/\/t.co\/ERcsLdmVOv\">pic.twitter.com\/ERcsLdmVOv<\/a><\/p>\n<p>\u2014 Andrew Kang (@Rewkang) <a href=\"https:\/\/twitter.com\/Rewkang\/status\/1296530451486539776?ref_src=twsrc%5Etfw\">August 20, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>The deepest market depth for the ETH\/USD pair, according to Kang&#8217;s calculations, is on Bitfinex. In sixth place, between Kraken and OKEx, sits the decentralized 1inch. Note that 1inch is a DEX aggregator and accounts for the combined liquidity of such platforms.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p dir=\\\"ltr\\\" lang=\\\"en\\\">Yes it\u2019s an aggregator so it\u2019s essentially measuring the aggregated depth of all DEXs it plugs into<\/p>\n<p>\u2014 Andrew Kang (@Rewkang) <a href=\\\"https:\/\/twitter.com\/Rewkang\/status\/1296759704689864705?ref_src=twsrc%5Etfw\\\">August 21, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>Commenters immediately noted the absence of fiat pairs on the mentioned DEXs. The investor was likely comparing ETH\/USDT or ETH\/USDC pairs, which is indirectly corroborated in the following tweets.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p dir=\\\"ltr\\\" lang=\\\"en\\\">Interestingly, there doesn\u2019t seem to be a very tight correlation between depth and volume.<\/p>\n<p>Looked at Ratios of Depth:Volume here.<\/p>\n<p>OkEx and Binance generate a lot more volume than their depth levels imply.<\/p>\n<p>DEXs around the middle, but still have high variance <a href=\\\"https:\/\/t.co\/Ounankkk0S\\\">pic.twitter.com\/Ounankkk0S<\/a><\/p>\n<p>\u2014 Andrew Kang (@Rewkang) <a href=\\\"https:\/\/twitter.com\/Rewkang\/status\/1296530456683241472?ref_src=twsrc%5Etfw\\\">August 20, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>According to Kang, Uniswap substantially outstrips many centralized exchanges with greater market depth in terms of daily trading volume. Binance remains the leader on this metric.<\/p>\n<p>Market depth and daily trading volume do not exhibit a strong correlation, he concluded.<\/p>\n<p>Earlier, the 1inch team <a href=\"https:\/\/u1f987.com\/en\/news\/1inch-team-deploys-mooniswap-automated-market-maker-algorithm\">presented<\/a> their own automated market maker (AMM) algorithm called Mooniswap and <a href=\"https:\/\/u1f987.com\/en\/news\/binance-labs-leads-2-8-million-funding-round-for-1inch\">raised<\/a> $2.8 million in a funding round with participation from Binance Labs.<\/p>\n<p>In late July, Uniswap by daily trading volume <a href=\"https:\/\/u1f987.com\/en\/news\/uniswaps-daily-trading-volume-tops-the-combined-gemini-poloniex-and-binance-us\">surpassed<\/a> Gemini, Poloniex and Binance US combined. In the same month it <a href=\"https:\/\/u1f987.com\/en\/news\/uniswap-the-largest-non-custodial-exchange-raised-11-million-in-investment\">raised<\/a> $11 million in investments.<\/p>\n<p>In August, an anonymous investor <a href=\"https:\/\/u1f987.com\/en\/news\/uniswap-user-buys-40000-eth-at-2m-premium-to-the-market\">bought<\/a> more than 40,000 ETH on Uniswap. As a result of his actions, the cryptocurrency\u2019s price on the platform jumped by 13%, causing him to overpay by nearly $2 million. The total value of the deal across a series of swaps amounted to $17.9 million. Analysts at the time highly praised Uniswap\u2019s liquidity.<\/p>\n<p>Follow ForkLog News on Telegram: <a href=\\\"https:\/\/t.me\/forklogfeed\\\" target=\\\"_blank\\\" rel=\\\"nofollow noopener noreferrer\\\">ForkLog Feed<\/a> \u2014 the full news feed, <a href=\\\"https:\/\/telegram.me\/forklog\\\" target=\\\"_blank\\\" rel=\\\"nofollow noopener noreferrer\\\">ForkLog<\/a> \u2014 the most important news and polls.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investor Andrew Kang compared the liquidity of the ETH\/USD pair on several centralized and decentralized (DEX) exchanges. He assessed the amount of liquidity required to move the price by 2%. According to his calculations, many DEXs already rival their centralized counterparts.<\/p>\n","protected":false},"author":1,"featured_media":27588,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[787,46],"class_list":["post-27587","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-dex","tag-ethereum"],"aioseo_notices":[],"amp_enabled":true,"views":"77","promo_type":"1","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/27587","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=27587"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/27587\/revisions"}],"predecessor-version":[{"id":27589,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/27587\/revisions\/27589"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/27588"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=27587"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=27587"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=27587"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}