A new report from Kaiko reveals that privacy token liquidity has dropped to an all-time low of just $5 million.
This drop follows the delisting of several trading pairs by OKX for not meeting certain criteria.
Regulatory challenges behind delisting
Regulatory pressures have hit tokens like Monero (XMR) and Zcash (ZEC) particularly hard, pushing them to the brink of delisting from platforms like Binance due to their low liquidity.
Despite market turbulence, the end of 2023 was marked by several notable developments. During last week’s sell-off, trading volume on Korean exchanges reached a multi-year high. Bitcoin’s share reached 32%, a level not seen since 2020, amid a general decline in altcoin trading volumes.
This shift in business dynamics has occurred despite growing regulatory efforts in South Korea, including proposed rules for crypto exchanges and a ban on crypto purchases with credit cards.
The SOL (Solana) market has also seen positive trends. At times, SOL trading volume exceeded the combined volume of Bitcoin and Ether on multiple exchanges, a rare occurrence in the crypto world. This increase in SOL’s market share, especially compared to Ether, signals a changing landscape in the altcoin space.
Meanwhile, PYUSD has had a slow start in the crypto trading sphere. Although it is listed on several centralized exchanges, its trading volume remains significantly low compared to established stablecoins like Tether (USDT).
Bitcoin Braces for Volatility as SEC Decides on Spot ETFs
January 10 marks a pivotal moment in the world of cryptocurrencies, with the SEC set to decide on Ark’s Bitcoin ETF spot. Whatever the outcome, the market is bracing for more volatility.
This comes after Bitcoin ended the week on a positive note, following a price crash that led to hundreds of millions in liquidations. Initially attributed to one analyst’s speculation about the Bitcoin ETF’s spot move, other reports point to deeper underlying issues.
Before the crash, market indicators such as price drift signaled trouble. Slippage rates on major exchanges like Binance, Coinbase and Kraken exceeded 0.02% on January 2, indicating deteriorating liquidity even as Bitcoin prices hovered around $45,000.
Futures markets also painted a picture of an overheated market. Bitcoin USD perpetual futures open interest hit a high of $10 billion in early December, the highest since November 2021.
This increase in open interest indicates increased leverage in the market. Additionally, high volumes in options markets, particularly Bitcoin options on Deribit, indicate that traders are anticipating volatility in light of the ETF’s spot move.
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