Catch Ya Later! Altcoin Liquidity Fleeing To Offshore Exchanges After FTX Collapse, Research Report Says

Liquidity in the altcoin market is becoming increasingly concentrated on offshore exchanges, according to a new report.

What Happened: A Kaiko analysis reveals that offshore exchanges now account for 69% of the total altcoin liquidity, a sharp rise from 55% in early 2022.

This trend is primarily driven by large and mid-cap altcoins, which have seen a resurgence in trading volume and market depth in recent months.

Liquidity dropped more than 60% between April and December 2022, but the market has gradually recovered, surpassing its pre-FTX average in Q1 2024 before pulling back in Q3.

However, this recovery has been uneven.

Full story available on Benzinga.com