Altcoin liquidity worsens
FTX’s fallout gave birth to a phenomenon that Kaiko analysts previously have termed the “Alameda Gap” –Kaiko said market makers are providing liquidity “asymmetrically, with spreads widening a lot more for higher-beta altcoins.” By comparing the average daily spreads for the top altcoins by market cap on the Binance and Coinbase exchanges in the weeks before and after FTX filed for bankruptcy protection, Kaiko found that Solana’sData chart shows altcoin liquidity worsens in post-FTX fallout.
SOL’s price has been falling sharply given its close ties with FTX/Alameda – plunging 59% in the past month. CoinDesk first reported onon Nov. 2 that the firm held $292 million of “unlocked SOL,” $863 million of “locked SOL” and $41 million of “SOL collateral.” “Alameda was one of the most important market makers for some small-cap altcoins, while other major market makers registered losses and are likely to review their risk controls, which could impact liquidity in the short term,” the report from Kaiko said.
FTX_Official _jocelynyang_ Wbtc isn't even close to being Bitcoin. Hfsp