Crypto exchanges have seen a significant increase in liquidity this year, as reported by the digital asset analytics firm Kaiko. According to a recent analysis by Kaiko, the surge in liquidity can be attributed to a rise in trading volume and a positive shift in market sentiment, particularly in Bitcoin (BTC) markets in the US.

The approval of spot BTC ETFs in the US has played a role in this increase, with more institutional firms entering the market. Currently, US exchanges account for over 60% of BTC’s 1% market depth, compared to around 45% at the beginning of 2023.

Kaiko also highlights that Bitcoin dominance over altcoins has increased on US exchanges but decreased on offshore markets. This trend is driven by higher institutional participation in the US, with traders showing a preference for BTC over riskier altcoins. Despite a price decline in Q2, BTC’s share on US markets has continued to rise, indicating that the launch of spot ETFs could further amplify this trend.

Ki Young Ju, the CEO of CryptoQuant, recently shared similar observations on social media, noting that Bitcoin is gaining traction in the US market. As of now, BTC is trading at $66,381.

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