CoinDesk Research says majors rebuilt their liquidity after last year's crash, while altcoin depth kept shrinking. What does "depth" actually mean?
🧠 In plain words
Market depth is the value of buy and sell orders waiting close to the current price. Imagine a crowded escalator versus an empty one: with many people standing on it, one person pushing does not change much. With only a few, one push sends everyone flying. Thin books work the same way for prices.
✅ What it means for you
• Mid-caps like $AVAX can move several percent on orders that would barely dent bitcoin
• Stop-losses in thin markets can fill far from where you set them
• Altcoin depth within 5% of price fell about a third since early 2025, per CoinDesk
One-line takeaway: size positions for the market's depth, not just your conviction.
#Liquidity #Altcoins
🧠 In plain words
Market depth is the value of buy and sell orders waiting close to the current price. Imagine a crowded escalator versus an empty one: with many people standing on it, one person pushing does not change much. With only a few, one push sends everyone flying. Thin books work the same way for prices.
✅ What it means for you
• Mid-caps like $AVAX can move several percent on orders that would barely dent bitcoin
• Stop-losses in thin markets can fill far from where you set them
• Altcoin depth within 5% of price fell about a third since early 2025, per CoinDesk
One-line takeaway: size positions for the market's depth, not just your conviction.
#Liquidity #Altcoins