"We have not seen a material change or decline in BTC-USD depth at 2% throughout Oct," Coinbase's spokesperson told CoinDesk, highlighting stability despite market forecasts.
Kaiko's report stated the 2% BTC depth on Coinbase dropped by 46% on October 10, indicating that smaller trades could sway market prices heavily, suggesting liquidity challenges.
The metric of 2% market depth is crucial because it gauges the market's ability to handle large trades without significant price shifts or slippage, demonstrating liquidity.
Despite a reported liquidity drop, Kaiko observed that while ask-side depth fell, bid depth for buy orders increased, suggesting market makers may have adjusted in anticipation of losses.
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