A new report from Kaiko, a top crypto data provider, reveals a surprising trend in Bitcoin Cash (BCH). Despite a significant 23% price decline in the third quarter of this year, BCH has seen a remarkable increase in its liquidity.
So, what’s behind this surge in liquidity? Is it a sign that investors are bullish on Bitcoin Cash’s long-term prospects? Or is there something else going on? To find out, read on…
BCH’s Liquidity Surge
Bitcoin Cash, or BCH, has been turning heads in the cryptocurrency world, setting itself apart from other digital assets. Kaiko, a respected crypto data provider located in Paris, examined several factors such as market depth, bid-ask spreads, and trading volumes from various exchanges to assess liquidity.
The report suggests that this boost in liquidity indicates a surge in trading activity and overall engagement within the Bitcoin Cash community. This essentially means that more investors and more trading action are happening with Bitcoin Cash.
But there’s a twist!
It’s worth noting that overall liquidity in the crypto market has been on the decline since Alameda Research faced challenges in November. Given BCH’s substantial 23% price drop during this quarter, you might expect liquidity to shrink as well. Typically, when prices fall, it becomes harder to buy and sell, resulting in less liquidity.
But here’s the intriguing part: Bitcoin Cash’s liquidity is on the rise. This is a positive 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 current price dip. They believe in its long-term potential.
Also Read: Top Altcoins To Watch In October: Bitcoin Cash (BCH), Chainlink (LINK) And Maker (MKR) Might Trigger ‘Uptober’
Other Altcoins Pick Pace
Bitcoin Cash isn’t the only cryptocurrency enjoying enhanced liquidity. Other digital assets like Stellar’s XLM, TRON’s TRX, and Ethereum Classic (ETC) are also experiencing improved liquidity conditions. However, well-established cryptocurrencies like Bitcoin (BTC), Ether (ETH), XRP, and Dogecoin (DOGE) have seen no changes in their liquidity during this period.
On the flip side, cryptocurrencies such as BNB Chain’s BNB, OKX exchange’s OKB, and Toncoin (TON) have witnessed a decline in their liquidity.
Read More: Next AltSeason Spotted- Altcoins to Consider in October 2023
Beyond the Price Tag
While price performance remains a crucial aspect of the cryptocurrency market, the surge in liquidity for Bitcoin Cash demonstrates its lasting appeal and resilience. It proves that BCH holds more value than just its price on a chart. Investors and traders are recognizing its potential for the long run, and that’s an encouraging sign for its future.
This news is republished from another source. You can check the original article here