Summary
- AmberCN said current altcoin liquidity is in very bad shape.
- 1inch (1INCH), with a circulating market cap of $180 million, was said to have fallen 7% on a sell-off of less than $2 million.
- AmberCN added that of Binance’s 1INCH/USDT turnover, actual market turnover is only about $340,000, indicating a widening liquidity gap.
Warnings are mounting that liquidity in the altcoin market is deteriorating rapidly. Analysts say that even among altcoins with relatively large market capitalizations, prices are being significantly jolted by comparatively small sell orders.
On the 27th, AmberCN, a crypto (virtual asset) account, said on X (formerly Twitter) that “altcoin liquidity is in a very bad state right now,” adding that “in 1inch (1INCH), with a circulating market cap of around $180 million, a sell order of less than $2 million immediately sent the price down 7%.” The decline later widened to as much as 13% at one point.
A contraction in trading volume was also cited. AmberCN noted that “24-hour turnover in Binance’s 1INCH/USDT pair is only about $1.5 million,” explaining that “around $1.16 million of that was volume generated by arbitrage bots after a sale from a specific on-chain address, meaning turnover formed by the actual market is about $340,000.”
AmberCN added that “despite the headline volume, the underlying buy/sell base is extremely fragile,” saying liquidity gaps are widening across the broader altcoin market.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
