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Kaiko Report Indicates Bitcoin Cash Liquidity Surge in Q3 Despite 23% Price Decline

The post Kaiko Report Indicates Bitcoin Cash Liquidity Surge in Q3 Despite 23% Price Decline appeared first on Coinpedia Fintech News

A recent report from Kaiko, a prominent crypto data provider, has highlighted an interesting trend in Bitcoin Cash (BCH). Despite a notable price drop of 23%, BCH has experienced a significant surge in liquidity during the third quarter of this year.

Kaiko Report: Bitcoin Cash Liquidity Shows Remarkable Q3 Growth

Bitcoin Cash, often abbreviated as BCH, has been making waves in the cryptocurrency world, standing out among alternative digital assets. Kaiko, a reputable crypto data provider based in Paris, conducted an analysis based on various factors such as market depth, bid-ask spreads, and volumes from tradable exchanges to gauge market liquidity. 

The report indicates that this boost in liquidity signifies increased trading activity and engagement within the Bitcoin Cash ecosystem. It suggests that more investors and more movement are happening with Bitcoin Cash. 

It’s essential to note that there has been an overall decrease in market liquidity across the crypto market since the challenges faced by Alameda Research last November.

Earlier, Bitcoin Cash faced a 23% decrease in its price during this 3rd quarter, which might seem surprising. Usually, when prices drop a lot, it becomes harder to buy and sell, meaning less liquidity quickly.

But here’s the exciting part: Bitcoin Cash’s liquidity went up. This is a good sign because it shows that people are still interested in using Bitcoin Cash, despite its low price. It means that traders and investors are sticking around, not just focusing on the price dropping right now. They believe in its long-term potential.

Other Altcoins Like XLM, TRON’s TRX & ETC Show Liquidity Gains

Bitcoin Cash wasn’t the only cryptocurrency to experience improved liquidity. Other digital assets, including Stellar’s XLM, TRON’s TRX, and Ethereum Classic (ETC), also witnessed enhanced liquidity conditions. However, the established cryptocurrencies like Bitcoin (BTC), Ether (ETH), XRP, and Dogecoin (DOGE) displayed no changes in liquidity during this period.

On the downside, cryptocurrencies like BNB Chain’s BNB, OKX exchange’s OKB, and Toncoin (TON) witnessed a decline in their liquidity.

While price performance is a vital aspect of the cryptocurrency market, the liquidity boost is a testament to the enduring appeal and resilience of Bitcoin Cash, demonstrating that it’s more than just a price tag.

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