Ethereum Jumps 70% in Third Quarter Even as Order-Book Liquidity Shrinks to 35%-45% of Bitcoin's

Forecast Trend Report by Period

Ethereum surged 70% in the third quarter, outpacing Bitcoin's gain, but exchange order-book liquidity shrank sharply from a year earlier.

CoinDesk reported on October 5, citing a CoinGecko report, that Ethereum's median daily market depth from July 6 to Sept. 30 was just 35% to 45% of Bitcoin's. That compares with at least 60% in the same period last year.

Ethereum rose 70% over that stretch, far ahead of Bitcoin's 42% advance. While rising prices and heavier trading activity typically help improve order-book liquidity, Ethereum's latest rally did not lead to deeper market depth, according to the report.

Market depth is a liquidity gauge that measures the total value of buy and sell orders placed within a set range around the current price. The shallower the market depth, the more likely large trades are to trigger bigger price swings.