The 2% market depth provides a measure of the liquidity for bitcoin and ether.
dYdX announced last month that it will postpone its token release.
The cryptocurrency market is going through an “Alameda gap,” where several projects are delaying their token releases. It is because of the lack of liquidity despite rising bitcoin (BTC) and ether (ETH) prices.
The number of new coin applications decreased during 2022, from 10,264 in the first quarter to 6,350 in the fourth, according to reports. After the collapse in November of the cryptocurrency exchange FTX and its sister company Alameda Research, the decline quickened towards the end of the year. Before closing down, Alameda was one of the biggest market makers. That supplying tokens with billions of dollars worth of liquidity for both large- and small-cap tokens.
The 2% market depth provides a measure of the liquidity for bitcoin and ether. When liquidity decreases, it becomes challenging for traders to carry out large orders without impacting prices. And presents challenges for companies trying to launch new coins.
dYdX Delayed Its Launch of Native Token
The decentralized exchange dYdX said last month that it planned to push back the release of over 150 million tokens to early backers. And creators from December 2022 to December 2023 in the hopes that the market would have stabilized by then. Concern regarding market liquidity, according to those with knowledge of the situation, is the reason.
And also according to a recent report, more than 24% of the new cryptocurrency tokens launched last year were involved in “pump-and-dump” scams. That deceive investors into purchasing at inflated prices. This highlights the difficulties that regulators around the world are still facing in protecting consumers as they step up their oversight of digital assets.