TokenInsight: 2024 Q1 Cryptocurrency Exchange Liquidity Analysis Report
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TokenInsight: 2024 Q1 Cryptocurrency Exchange Liquidity Analysis Report
TokenInsight analyzed liquidity-related data by selecting three popular cryptocurrencies—BTC, ETH, and SOL—as samples, based on spot and derivatives order book data from nine influential centralized exchanges within a specific time window.
Navigating Web3 tides with focused insightsBy TI Research
In the cryptocurrency field, liquidity refers to the ability to quickly buy or sell an asset in the market without affecting the price stability of a specific asset. In other words, it measures how easily a particular asset can be rapidly converted into other assets or cash.
The liquidity and price of crypto assets are significantly influenced by the liquidity of trading markets. Assessing and analyzing exchange liquidity is an essential part of secondary market analysis for cryptocurrencies. TokenInsight selected three popular cryptocurrencies—BTC, ETH, and SOL—as samples for liquidity-related analysis.
Based on the statistical results, the exchange liquidity ranking is as follows:
Ranking
Futures Contract Data Analysis
Futures Trading Depth
Regarding futures trading depth, TokenInsight separately measured the 0.1% and 0.3% depth data of BTCUSDT, ETHUSDT, and SOLUSDT futures pairs across exchanges, with the following conclusions:
Binance and OKX ranked 1st and 2nd respectively in BTCUSDT futures trading depth. OKX performed better than Binance under 0.1% depth.
For ETHUSDT futures trading depth, Binance and OKX showed similar performance to BTCUSDT. OKX clearly outperformed Binance at shallower depths (0.1%), while Binance held a slight advantage at mid-to-far depths.
Binance ranked 1st across both depth levels for SOLUSDT futures.
Futures Pair Slippage
To evaluate slippage faced by retail users placing large orders and major whales, TokenInsight simulated purchases of $1 million, $5 million, and $10 million worth of BTC, ETH, and SOL in its analysis of futures pair slippage, calculating slippage under different order sizes. The findings are as follows:
Binance had the lowest slippage for both $1 million and $5 million BTC buy orders. OKX followed closely behind, and the gap between OKX and Binance narrowed as order size increased. At $10 million, OKX surpassed Binance and took first place among all exchanges.
In terms of ETH slippage, OKX recorded the lowest slippage across all three order tiers, ranking first among all exchanges. Binance ranked second, but the slippage gap between Binance and OKX widened as the simulated buy order amount increased.
For SOL slippage, Binance maintained an absolute lead across all three order tiers, with its advantage increasing as the simulated buy order size grew larger.
Futures Trading Fees
Gate's VIP0 Maker fee for futures is the lowest among all exchanges at 0.015%. For VIP0 Taker fees, differences across exchanges were minimal, ranging between 0.05% and 0.06%.
OKX, HTX, and KuCoin all offer negative Maker fees for their highest-tier VIP accounts. Among them, HTX offers the lowest rate among the three. However, in terms of highest-tier VIP Taker fees, OKX performs best.
Spot Market Data Analysis
Spot Trading Depth
For spot trading depth, TokenInsight analyzed average depth across exchanges for the BTC/USDT, ETH/USDT, and SOL/USDT pairs within 0.1%, 0.3%, and 0.5% price ranges. The findings are as follows:
Binance's depth in BTC/USDT far exceeded all other exchanges across every price range, demonstrating superior performance. Bybit and OKX followed closely, showing stronger depth at mid-to-far ranges compared to near ranges, providing relatively stable trading conditions suitable for large and ultra-large orders.
Binance ranked first in depth on both sides of the order book for ETH/USDT across all price ranges. Bybit ranked second at 0.1% and 0.3% depth levels, but slightly trailed HTX in bid depth at the 0.5% level.
Binance again secured the top position across all three price ranges for SOL/USDT depth, with OKX consistently ranking first within each interval.
Spot Pair Slippage
In analyzing spot pair slippage, TokenInsight simulated purchases of $1 million, $3 million, and $5 million worth of BTC, ETH, and SOL, calculating slippage under varying order sizes. The findings are as follows:
Binance achieved the lowest slippage for BTC buy orders across all three simulated amounts. OKX ranked second in the $1 million test but was overtaken by Bybit in the $3 million and $5 million tests.
Binance and Bybit ranked first and second respectively in ETH buy order slippage. OKX and Gate performed well in the $1 million test, but the slippage gap between them and Binance/Bybit widened as purchase volume increased.
Binance's advantage in SOL slippage was even more pronounced compared to BTC and ETH. Gate ranked second in the $1 million and $3 million tests.
Spot Trading Fees
OKX offers the lowest VIP0 Maker and Taker fees in spot trading among all exchanges, delivering the best cost efficiency for retail traders and making it easier to attract new users.
OKX and KuCoin offer the lowest (negative) Maker fees for their highest-tier VIP accounts. However, OKX has higher entry thresholds for its top VIP tier. In terms of highest-tier VIP Taker fees, OKX significantly outperforms KuCoin.
Below are excerpts from the report:
Trading Depth
Trading Depth
Spot Slippage
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