ETH Liquidity Declines After Launch of Spot ETFs

According to CCData, ETH order book liquidity has been declining since the debut of nine Ethereum spot ETFs on July 23rd. Since the ETF launch, the average 5% market depth for ETH trading pairs on U.S. centralized exchanges has fallen by 20%, reaching approximately $14 million. On offshore centralized exchanges, this figure has decreased by 19%, settling around $10 million. In other words, it's now easier for the spot price to move up or down by 5%, indicating reduced liquidity and increased sensitivity to large orders.

CCData research analyst Jacob Joseph stated that although the liquidity levels for ETH trading pairs on centralized exchanges are still higher than at the beginning of the year, they have decreased by nearly 45% since peaking in June. This could be attributed to unfavorable market conditions and the seasonal impact of summer, which typically sees a reduction in trading activity.