Summary of Contents

  • Binance's demand depth decreases to 1.2 BTC from 100 BTC.
  • High Slippage Leads to Money Loss for Many Investors

Despite having the greatest trading volume of any cryptocurrency exchange in the world, Binance has had some issues when buying and selling. 

On October 16th, however, investors who wish to purchase and sell Bitcoin (BTC) on Binance were at a disadvantage compared to their counterparts on Kraken and Coinbase, according to statistics compiled by Paris-based Kaiko.

Binance's demand depth decreases to 1.2 BTC from 100 BTC.


Following the spike in volatility caused by the erroneous rumors about the approval of BlackRock's spot Bitcoin exchange-traded fund (ETF) spreading on social media, the 0.1% demand depth on Binance, which is a gauge of buyer-side liquidity, plunged from 100 BTC to just 1.2 BTC. 

When BlackRock rejected the report, the largest cryptocurrency lost all of its gains after climbing 7.5% to $30,000 in response to the news.

The number of pending purchase orders that are within 0.1% of the average price, which is the sum of the bid and ask prices, is known as the 0.1% sales depth. The price at which the seller is willing to sell is the bid price, and the price at which the buyer is willing to purchase is the ask price. 

The easier it is to execute large buy and sell orders at stable prices, and the lower the slippage (the discrepancy between the predicted price of a transaction and the actual price at which it is performed), the higher the bid and ask depth.


Binance is having issues with liquidity as depth falls from 100 BTC to 1.2 BTC.



On OKX and Bybit, the 0.1% depth fell to 2 BTC, but the average demand on the main cryptocurrency exchanges fell below 95 BTC.

High Slippage Leads to Money Loss for Many Investors


Numerous investors, including well-known anonymous investors like exitpump and Omz, suffered considerable losses owing to slippage as a result of the sharp decline in liquidity. Up to 20% of slippage was experienced by some investors. The graph demonstrates that amid the reduction in liquidity, Kraken and Coinbase outperformed Binance and other cryptocurrency exchanges.

Riyad Carey, a researcher at Kaiko, claims that the sticky liquidity on Kraken and Coinbase likely reflects the level of complexity of the market-making companies who are in charge of generating liquidity in the order book.

DISCLAIMER: We don't provide any investment advice.