Binance.US market depth collapses by 78%

After filing of the lawsuit SEC, the market depth for the 25 leading crypto assets on Binance.US fell by 78%, according to Kaiko analysts.

https://t.co/pup2WYms9R market depth is down a whopping 78% since the SEC lawsuit ?

Market makers vacated instantly, leaving hardly any #liquidity. pic.twitter.com/EvoO778mAy

— Kaiko (@KaikoData) June 12, 2023

“Market makers left immediately, leaving hardly any liquidity on the platform,” the specialists noted.

Representatives from Wintermute and Keyrock confirmed The Block that they were among the firms that left Binance.US.

Market depth reflects its capacity to absorb buy/sell orders and how quickly and with minimal price deviation trades are executed.

A lack of liquidity can lead to significant price slippage, negatively affect trading efficiency and the platform’s attractiveness.

Earlier Binance.US announced a suspension of dollar deposits from June 13.

On June 8, the American platform Binance removed 10 trading pairs tied to Bitcoin and its own stablecoin BUSD, and also suspended over-the-counter trading.