Binance Liquidity on the Rise as BitMEX’s Grip on Market Loosens

According to data made available by crypto-derivatives analytics firm Skew, the $10 million daily average bid-ask spread on cryptocurrency exchange Binance has been falling steadily over the last week. This spread represents the difference in price between assets available for immediate purchase and immediate sale. Reporting a 0.71% spread on 19 February, Binance saw a dip to 0.55% over the week, marking a drop of around 16 basis points.

Skew had also reported a 50 basis point drop between 6 January 6 and 4 February. This implies that liquidity on Binance is rising, as more buyers are matching with sellers on the cryptocurrency exchange across a larger range of prices. BitMEX, on the other hand, might be seeing liquidity that’s falling slightly, despite a drop of 5 basis points since last week.

Binance liquidity on the rise as BitMEX’s grip on market loosens
Binance liquidity on the rise

19 February saw a bid-ask spread of 0.25% on the BitMEX exchange, which dropped to 0.20% over the next four days. 24 February, however, saw a rise to the 0.22% level, something that could imply that fewer users are choosing to trade on BitMEX. Read More...