Data-Driven Analysis of Cryptocurrency Markets, Kaiko

Kaiko

Data-Driven Analysis of Cryptocurrency Markets

Kaiko is the leading cryptocurrency market data provider for institutional investors and enterprises. We empower market participants with accurate, transparent, and actionable financial data to be leveraged for a range of market activities. Kaiko’s mission is to be the foundation of the new digital finance economy by serving as a single source for market information. Our mission is premised on the idea that high-quality data drives market efficiency and greater transparency throughout the industry. For each of our enterprise clients, we build custom data plans designed for a range of use cases.

Crypto

<ul><li>Exceptionally low liquidity, macro factors, and a flurry of bad news were among the drivers of last week's flash crash, pushing BTC to its lowest level in months and spurring a wave of liquidations across derivative markets. </li><li>While BTC 2% market depth has stabilized over the past few months at around 5k BTC, it remains more than 50% below its pre-FTX highs.</li><li>As BTC prices began falling towards $25k around 8pm UTC on August 17, market depth dropped 50% to just 2k BTC.</li></ul>

Exceptionally low liquidity, macro factors, and a flurry of bad news were among the drivers of last week's flash crash, pushing BTC to its lowest level in months and spurring a wave of liquidations across derivative markets. While BTC 2% market depth has stabilized over the past few months at around 5k BTC, it remains more than 50% below its pre-FTX highs.As BTC prices began falling towards $25k around 8pm UTC on August 17, market depth dropped 50% to just 2k BTC.

<ul><li>Last week, there was a possible attempt to depeg Tether (USDT), the world's largest stablecoin.</li><li>The company has since claimed the destabilization was caused by manipulation ahead of a big documents release, which shed new light on the firm's banking relationships and commercial paper exposure. </li><li>While the facts remain blurry, the selling started a few days before USDT dipped to as low as $.995 on both centralized and decentralized exchanges, suggesting some holders may have had advanced warning of the release. </li></ul>

Last week, there was a possible attempt to depeg Tether (USDT), the world's largest stablecoin.The company has since claimed the destabilization was caused by manipulation ahead of a big documents release, which shed new light on the firm's banking relationships and commercial paper exposure. While the facts remain blurry, the selling started a few days before USDT dipped to as low as $.995 on both centralized and decentralized exchanges, suggesting some holders may have had advanced warning of the release. 

<ul>
<li>While CeFi liquidity has been on a gradual decline this year, which will be the main focus of this article, DeFi is facing a liquidity crisis of sorts in the last few days as one of the most liquid pools in the space becomes heavily imbalanced, so we’ll start there.</li>
<li>After the latest round of fears surrounding Tether, the 3pool moved to a weight of 75% Tether in the last day, as users rushed out of crypto’s largest stablecoin at once.</li>
<li>This resulted in Tether depegging to a price of $0.996. This is the most imbalanced the Curve pool has been this year.</li>
</ul>


While CeFi liquidity has been on a gradual decline this year, which will be the main focus of this article, DeFi is facing a liquidity crisis of sorts in the last few days as one of the most liquid pools in the space becomes heavily imbalanced, so we’ll start there.
After the latest round of fears surrounding Tether, the 3pool moved to a weight of 75% Tether in the last day, as users rushed out of crypto’s largest stablecoin at once.
This resulted in Tether depegging to a price of $0.996. This is the most imbalanced the Curve pool has been this year.


<ul><li>Binance.US is bleeding. One week after the SEC lawsuit, market makers and traders have fled the exchange en masse.</li><li>Liquidity, as measured by aggregated market depth for 17 tokens on the exchange, has fallen nearly 80% over the past week.</li><li>On June 4, the day before the SEC lawsuit, market depth was $34mn. Today, market depth is just $7mn.</li></ul>

Binance.US is bleeding. One week after the SEC lawsuit, market makers and traders have fled the exchange en masse.Liquidity, as measured by aggregated market depth for 17 tokens on the exchange, has fallen nearly 80% over the past week.On June 4, the day before the SEC lawsuit, market depth was $34mn. Today, market depth is just $7mn.

<ul><li>This has been perhaps the single most consequential week for crypto in the U.S., as the SEC charged Coinbase with operating an unregistered securities exchange and charged Binance, Binance.US, and CEO Changpeng Zhao (“CZ”) with a variety of securities law violations. </li><li>Just two months ago, we chronicled the CFTC’s charges against Binance and CZ, which primarily focused on Binance’s alleged efforts to onboard high-volume U.S. traders onto Binance, rather than Binance.US (for simplicity, “Binance” will refer to the international exchange and “Binance.US” its U.S. affiliate).</li><li>This analysis showed that despite the creation of Binance.US in 2019, Binance’s trading had actually become more skewed towards U.S. hours, in fact resembling U.S.-based exchanges like Coinbase.</li></ul>

This has been perhaps the single most consequential week for crypto in the U.S., as the SEC charged Coinbase with operating an unregistered securities exchange and charged Binance, Binance.US, and CEO Changpeng Zhao (“CZ”) with a variety of securities law violations. Just two months ago, we chronicled the CFTC’s charges against Binance and CZ, which primarily focused on Binance’s alleged efforts to onboard high-volume U.S. traders onto Binance, rather than Binance.US (for simplicity, “Binance” will refer to the international exchange and “Binance.US” its U.S. affiliate).This analysis showed that despite the creation of Binance.US in 2019, Binance’s trading had actually become more skewed towards U.S. hours, in fact resembling U.S.-based exchanges like Coinbase.

United States

BNB was launched in 3rd July 2017 as an ERC-20 Token that enabled holders to get discounted trading fees at Binance Exchange. BNB has evolved over time to also be the native token of its own blockchain. BNB can still be used to pay for discounted Binance services though it is also heavily used as payment for gas when confirming transactions on BNB Chain.

Binance Coin (XBIUSD CURNCY)

Top Trends of The Summer

While BTC 2% market depth has stabilized over the past few months at around 5k BTC, it remains more than 50% below its pre-FTX highs.

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The Data Behind Tether's Depeg

The company has since claimed the destabilization was caused by manipulation ahead of a big documents release, which shed new light on the firm's...

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Q2 Crypto Liquidity Update

While CeFi liquidity has been on a gradual decline this year, which will be the main focus of this article, DeFi is facing a liquidity crisis of...

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Market Makers Flee Binance.US

Liquidity, as measured by aggregated market depth for 17 tokens on the exchange, has fallen nearly 80% over the past week.

Kaiko

The Data Behind the SEC's Big Week

This analysis showed that despite the creation of Binance.US in 2019, Binance’s trading had actually become more skewed towards U.S. hours

Kaiko