Privacy coin liquidity hits record low of $5 million

ZEC is the token with the most delistings among anonymous tokens in the past two years, and the market is fragmented.

Kaiko’s new report Disclosure Anonymous token liquidity plummeted to an all-time low of $5 million.

The drop came after OKX delisted some trading pairs for not meeting certain criteria.

Legal challenges behind delisting

Regulatory pressure has hit tokens like Monero (XMR) and Zcash (ZEC) particularly hard, pushing them to the brink of delisting from platforms like Binance due to low liquidity.

Despite market volatility, the end of 2023 saw some notable developments. Amid last week’s sell-off, trading volumes on South Korean exchanges reached their highest levels in years. Amid a decline in overall altcoin trading volume, Bitcoin’s market share increased to 32%, its highest level since 2020.

This changing trading dynamic comes despite increasing regulatory measures in South Korea, including proposed exchange rules and a ban on using credit cards to purchase cryptocurrencies.

There are also positive trends in the SOL (Solana) market. At times, SOL trading volumes exceeded the combined Bitcoin and ETH trading volumes on some exchanges, a rare event in the crypto world. SOL’s growing market share, especially compared to ETH, signals a changing landscape in the altcoin space.

Meanwhile, PYUSD is off to a slow start. Despite being listed on multiple centralized exchanges, its trading volume is still significantly lower compared to established stablecoins such as USDT.

Bitcoin Prepare Volatility at SEC coming soon Decisions about spot ETFs

January 10th is a big day in the crypto world, as the SEC will make a decision on Ark’s Bitcoin spot exchange-traded fund (ETF). Regardless of the outcome, the market will face greater volatility.

The week ended well after a drop in Bitcoin prices led to hundreds of millions of dollars in liquidations. Initially attributed to analyst speculation about the Bitcoin ETF spot decision, subsequent reports pointed to deeper fundamental issues.

Prior to the crash, market indicators such as falling prices pointed to the problem. On January 2, slippage rates on major exchanges such as Binance, Coinbase, and Kraken rose to over 0.02%, indicating that liquidity is declining even as Bitcoin prices hover around $45,000.

The futures market also shows signs of overheating. Bitcoin perpetual futures open interest (OI) peaked at $10 billion in early December, the highest level since November 2021.

An increase in OI indicates an increase in market leverage. Additionally, high trading volume in options markets, particularly Bitcoin options on Deribit, suggests traders are anticipating volatility ahead of the spot ETF decision.

You can check coin prices here.

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According to “Crypto Potato”