The State of Liquidity Report is a quarterly report that offers valuable insights on the past quarter’s market listings and liquidity landscape. It covers overall market trading trends, volumes and volatility, token listing and delisting activity, and insights on notable listings during this period. This report may be useful for projects that are looking to launch their own token in the near future, projects that are already listed, as well as investors and other market participants.
All the data used in this report is collected from publicly available sources.
The overall crypto market continues to trade at muted volumes, possibly due to macro investor sentiment and regulatory uncertainties. While trading volumes have slowly started to shift away from Binance, there is still a lot of concentration on top exchanges, both centralised and decentralised. Even though major exchanges are still listing new tokens, the number has slowed. Delistings have also occurred, indicating the importance of maintaining token performance to avoid being delisted.
Notable listings in Q3 included tokens like SEI, CYBER, WLD, ARKM, MNT, and PENDLE. SEI stood out as the only token that has managed to sustainably beat the broader market by maintaining a premium on its list price, while MNT has grown substantially in terms of volume since launch.
Figure 1: Top 15 CEXs and Top 5 DEXs from CoinMarketCap Ranking
Figure 2: This aggregated trading volume from Top 15 CEXs and Top 5 DEXs from CoinMarketCap, not total volume overall, and is meant to be context for Figure 1.
Figure 3: Frequent Listers (101 or more listings per quarter)*
Figure 4: Active Listers (11-100 listings per quarter)*
Figure 5: Exclusive Listers (1-10 listings per quarter)*
*CoinMarketCap Top 15 by trust score, with the addition of MEXC, as this is a common exchange for new listings. Data on previous listings are pulled from various data feeds and cross checked against exchange websites and Twitter.
To provide an overview of the overall state of market liquidity, we survey the top 1000 tokens as listed on CoinMarketCap and detail liquidity metrics across their top 3 exchange venues.
Figure 6: Top 1000 tokens ranked by volume of top performing exchange
Binance listed 6 coins this quarter, and with the exception of $FDUSD, we have all considered them notable here. Certainly the coin with the most buzz was WorldCoin ($WLD), which announced a $115 million dollar raise earlier in the year. Their enormous marketing budget, which included numerous global offline activations, particularly those in emerging markets and non-crypto-native areas, helped drive the high retail interest.
Pendle, being a DeFi protocol themselves, chose to list on DEXs first, but still listed on Binance as well in July 2023.
Figure 7: Comparison Stats for notable listings
We chose the most notable tokens based both on peak FDV, the ones listed by top exchanges, as well as the amount of community engagement, general reception and interest. There is quite bit of variation in their engagement numbers depending on their protocol type, particularly if it was consumer facing, as well as how much money they had raised.
Figure 8: Daily Trading Volume of Q3 Notable Listings
Figure 9: Spread of Notable Listings in Comparison to BTC and ETH
Figure 10: Depth Charts for Notable Listings in Comparison to BTC and ETH. Please note the x-axis scale, as BTC and ETH have significantly more depth.
Figure 11: Price volatility of Q3 notable listings
Figure 12: Index-adjusted price volatility of Q3 Notable Listings
In our next report, we will feature QoQ data about delisting and listing, as well as an adjusted view of the top exchanges for greater data accuracy.
This post is for general information purposes only. It does not constitute investment advice or a recommendation or solicitation to buy or sell any investment and should not be used in the evaluation of the merits of making any investment decision. It should not be relied upon for accounting, legal or tax advice or investment recommendations. This post reflects the current opinions of the authors and is not made on behalf of AlphaLab Capital Group or its affiliates and does not necessarily reflect the opinions of AlphaLab Capital Group, its affiliates or individuals associated with AlphaLab Capital Group. The opinions reflected herein are subject to change without being updated.
Disclaimer: This post is for general information purposes only. It does not constitute investment advice or a recommendation or solicitation to buy or sell any investment and should not be used in the evaluation of the merits of making any investment decision. It should not be relied upon for accounting, legal or tax advice or investment recommendations. This post reflects the current opinions of the authors and is not made on behalf of AlphaLab Capital or its affiliates and does not necessarily reflect the opinions of AlphaLab Capital, its affiliates or individuals associated with AlphaLab Capital. The opinions reflected herein are subject to change without being updated.