#ethup70%inq3butliquidityfalls EVERYONE IS CHEERING ETHEREUM OUTPERFORMING BITCOIN IN Q3 BUT
NO ONE IS LOOKING AT THE ORDER BOOKS
$ETH pumped 70% in Q3 while BTC only managed 42%. on the surface it looks like a massive rotation into eth but if you look at the actual liquidity
plumbing its a totally different story. from early july to late september the daily median market depth for eth collapsed to just 35-45% of btc. last year we were sitting comfortably at 60% or higher. right now within 0.15% of the current market price the bid and ask depth for eth is hovering around a measly $13M to $14M. its a phantom rally built on air. sure its still tradeable and most exchanges have over $1M on either side but the reality is market makers have quietly pulled their capital off the books.
when you synthesize this micro onchain reality with the broader macro environment it makes perfect sense. central bank liquidity might be shifting but institutional capital efficiency is ruthless right now. market makers arent going to leave massive limit orders sitting on exchange ledgers when capital costs are this tight. this shallow depth means the market is highly fragile to sudden structural shocks. and its not isolated to ethereum. look at SOL. its 2% depth just bled from $28M last year down to $20M. meanwhile XRP is sitting on about $30M in total depth despite having a market cap 40% higher than sol purely because sol handles about 25% more daily trading volume. the big players are pricing in risk by stepping away from the order books leaving retail to push up spot prices on thin liquidity.
$EWZ $LIT
NO ONE IS LOOKING AT THE ORDER BOOKS
$ETH pumped 70% in Q3 while BTC only managed 42%. on the surface it looks like a massive rotation into eth but if you look at the actual liquidity
plumbing its a totally different story. from early july to late september the daily median market depth for eth collapsed to just 35-45% of btc. last year we were sitting comfortably at 60% or higher. right now within 0.15% of the current market price the bid and ask depth for eth is hovering around a measly $13M to $14M. its a phantom rally built on air. sure its still tradeable and most exchanges have over $1M on either side but the reality is market makers have quietly pulled their capital off the books.
when you synthesize this micro onchain reality with the broader macro environment it makes perfect sense. central bank liquidity might be shifting but institutional capital efficiency is ruthless right now. market makers arent going to leave massive limit orders sitting on exchange ledgers when capital costs are this tight. this shallow depth means the market is highly fragile to sudden structural shocks. and its not isolated to ethereum. look at SOL. its 2% depth just bled from $28M last year down to $20M. meanwhile XRP is sitting on about $30M in total depth despite having a market cap 40% higher than sol purely because sol handles about 25% more daily trading volume. the big players are pricing in risk by stepping away from the order books leaving retail to push up spot prices on thin liquidity.
$EWZ $LIT
