Crypto exchanges have experienced a significant surge in liquidity this year, as reported by Kaiko, a prominent digital asset analytics firm. According to their latest analysis, this increase in liquidity can be attributed to higher trading volumes and improved market sentiment. Notably, the liquidity spike has been particularly pronounced in Bitcoin (BTC) markets within the United States.

Kaiko highlights that the approval of spot BTC ETFs in the US has played a pivotal role in this growth, attracting more institutional players to engage in the market. Currently, US exchanges dominate over 60% of BTC’s 1% market depth, up from approximately 45% at the start of 2023.

Source: Kaiko Research

Additionally, Kaiko observes a significant rise in Bitcoin’s dominance relative to alternative cryptocurrencies (altcoins) on US exchanges, while this dominance has slightly diminished on offshore platforms. Historically, US exchanges have shown higher BTC dominance due to greater institutional involvement and a preference among traders for Bitcoin over riskier altcoins. Interestingly, despite Bitcoin’s price decline in the second quarter, its market share on US platforms continued to grow, indicating that the introduction of spot ETFs could amplify this trend.

Source: Kaiko Research

Ki Young Ju, CEO of CryptoQuant, echoed these findings on the social media platform X, noting Bitcoin’s increasing prominence in the US market.

Source: Ki Young Ju/X

As of the latest update, BTC is trading at $66,381.

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