2024

Solana

Bitcoin

<figure>
 <figcaption>
 Cover image via <a href="https://u.today/" rel="noopener noreferrer nofollow">U.Today</a>
 </figcaption>
</figure>
<a href="https://u.today/solana-sol-major-nft-project-completes-77-migration-to-polygon-blockchain" rel="noopener noreferrer nofollow">SOL</a>, the Solana blockchain's native coin, has been a top performer over the last year, reaching new highs in late December. The rally halted briefly before SOL resumed its advance, reaching highs of $118.48 in today's session.
However, a recent analysis by Kaiko, an on-chain research provider, reveals that SOL is falling behind BTC and ETH on the liquidity index.
According to <a href="https://twitter.com/KaikoData/status/1758106402101637443" rel="noopener noreferrer nofollow">Kaiko</a>, SOL continues to show a lower market depth-to-volume ratio on centralized exchanges than BTC and ETH.
Market depth is described as the market's ability to support relatively large market orders without affecting the asset's price.
<blockquote>
 👉 <a href="https://twitter.com/hashtag/SOL?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#SOL</a> continues to show a lower market depth to volume ratio on centralized exchanges than <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#BTC</a> and <a href="https://twitter.com/hashtag/ETH?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#ETH</a>.📊 <a href="https://t.co/UEh6yD1a6h" rel="noopener noreferrer nofollow">pic.twitter.com/UEh6yD1a6h</a>— Kaiko (@KaikoData) <a href="https://twitter.com/KaikoData/status/1758106402101637443?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">February 15, 2024</a>
</blockquote>
Typically, market depth is closely associated with liquidity (the degree to which an asset can be quickly bought or sold in a marketplace at stable prices). If market depth is "deep" for a certain currency pair, it indicates that there is a significant volume of open orders on either the bid or ask side, making it easier to exchange the asset at prices that reflect its intrinsic value.
In the case of the market depth to volume ratio, larger values represent more market depth relative to volume, whereas lower values might suggest lesser market depth relative to volume.
The drop in Solana's market depth-to-volume ratio relative to that of Bitcoin and ETH might have been driven by significant <a href="https://u.today/solana-sol-sustains-second-week-of-inflows-as-blockchain-sentiment-improves" rel="noopener noreferrer nofollow">SOL</a> volumes and an ongoing lack of liquidity. This, however, proves significant, as it can be a useful metric for assessing tokens and identifying anomalies on exchanges.
At the time of writing, SOL was down 1.38% in the last 24 hours to $116.

Solana (SOL) Falling Behind BTC, ETH in Liquidity Index

U_Today

Other articles published on Feb 15, 2024

Bitcoin Climbs to New Heights, Overtaking Major Companies in Market Value

Why is Google One Hiding Its 200GB Plan?

US Treasury Official Refutes Claims of Significant Crypto Support to Hamas

Bitcoin ETF’s $4.1 Bln Inflow Sparks Concern Over Gold Price Dip To $1.2K

Massive Price TSUNAMI is Near - Take A Look At These Crypto Picks

Bitcoin Soars, Surpassing $52,000 and Market Giants

Join our free newsletter for daily crypto updates!