Crypto market depth has almost fully recovered and is back to its pre-FTX average reports crypto research firm Kaiko.
A major decrease in market liquidity that persisted after the shutdown of FTX and Alameda Research in November 2022 has now recovered to pre-collapse levels, according to crypto research firm Kaiko.
In a March 18 research bulletin, Kaiko data shows that the liquidity gap, dubbed the “Alameda Gap,” recovered to pre-FTX levels last week due in part to a recent Bitcoin rally.
Kaiko coined the term “Alameda gap” in November 2022 due to the firm’s role as a large market maker. It refers to a drop in liquidity on global exchanges caused by huge losses incurred by market makers.
