Binance US liquidity drops 76% | CoinDesk JAPAN | Coin Desk Japan

Market makers and traders are fleeing Binance.US.

According to a Kaiko report, just one week after the SEC filing, liquidity – the combined market depth of 17 cryptocurrencies listed on Binance US – dropped by 76%.

The market depth on June 4, the day before the suit was filed, was $34 million, but on June 12 it was $7 million. Its market share in the U.S. has also fallen to 4.8% from 20% in April. Binance’s market depth is also down 7% since the beginning of June.

“Binance’s market depth was initially stable and even increased shortly after the lawsuit, but over the weekend the market depth fell as altcoins fell,” reports Kaiko.

Coinbase also saw a 16% drop in liquidity over the same period.

“The sharp decline in liquidity shows that market makers are on edge and are trying to avoid volatility losses and the potential for withdrawals, as was the case with the FTX bankruptcy,” Kaiko said.

Also, while Binance US’s market share fell, Coinbase’s market share rose from 46% to 64% over the past week for unknown reasons, Kaiko wrote in the report.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Image: Kaiko
｜Original: Binance.US Market Depth Declines 76% in June Following SEC Lawsuit