Analysis: The Evolution of Cryptocurrency Liquidity

Tuesday, 18/06/2019 | 12:45 GMT by Sylwester Majewski
  • Finance Magnates takes a closer look at how cryptocurrency liquidity has evolved.
Analysis: The Evolution of Cryptocurrency Liquidity
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In recent years, the cryptocurrency sector underwent significant changes. When once only a few brokers were brave enough to offer new instruments for trading, we have now reached the point where any reputable broker offers some kind of cryptocurrency trading. So, how has cryptocurrency Liquidity evolved, and where is it heading?

Back in early 2017, Finance Magnates Intelligence conducted short research on the current state of the cryptocurrency industry. At that time, less than 30 brokers worldwide could be found that offered some form of cryptocurrency trading - mostly Bitcoin with LiteCoin, Ethereum , Ripple, or Dash on the side.

Nevertheless, some major changes took place in recent years on the cryptocurrency liquidity front, and things keep changing. Data provided by Coinmarketcap.com shows the enormity of the explosion in the number of available coins in recent years. In 2018 alone, this number grew from almost 1,400 to 2,071 at the end of the year. While most of these coins are exotic tokens, some of them have a chance to become popular instruments in the future.

Number of virtual coins

The Future of Cryptocurrency Liquidity Solutions?

What can we expect from cryptocurrency markets in the future? How will upcoming changes shape the liquidity offer? The final shape of the industry and solutions it offers will be formed by what clients request and by eliminating what did not work out as planned. The market is always right. Nevertheless, all market participants need to have some idea or assumptions were the industry should be moving to in the nearest future.

Tom Higgins from Gold-I was one of few who shared his opinion with Finance Magnates. "Demand from the institutional market is going to drive the crypto industry forwards. We already see indications of this. Institutional brokers need a robust, risk-managed place to trade as well as access to deep liquidity from different cryptocurrency Market Makers.”

To get the full article and the bigger-picture perspective on the cryptocurrency liquidity evolution, get our latest Quarterly Industry Report.

Intelligence Products | Finance Magnates

In recent years, the cryptocurrency sector underwent significant changes. When once only a few brokers were brave enough to offer new instruments for trading, we have now reached the point where any reputable broker offers some kind of cryptocurrency trading. So, how has cryptocurrency Liquidity evolved, and where is it heading?

Back in early 2017, Finance Magnates Intelligence conducted short research on the current state of the cryptocurrency industry. At that time, less than 30 brokers worldwide could be found that offered some form of cryptocurrency trading - mostly Bitcoin with LiteCoin, Ethereum , Ripple, or Dash on the side.

Nevertheless, some major changes took place in recent years on the cryptocurrency liquidity front, and things keep changing. Data provided by Coinmarketcap.com shows the enormity of the explosion in the number of available coins in recent years. In 2018 alone, this number grew from almost 1,400 to 2,071 at the end of the year. While most of these coins are exotic tokens, some of them have a chance to become popular instruments in the future.

Number of virtual coins

The Future of Cryptocurrency Liquidity Solutions?

What can we expect from cryptocurrency markets in the future? How will upcoming changes shape the liquidity offer? The final shape of the industry and solutions it offers will be formed by what clients request and by eliminating what did not work out as planned. The market is always right. Nevertheless, all market participants need to have some idea or assumptions were the industry should be moving to in the nearest future.

Tom Higgins from Gold-I was one of few who shared his opinion with Finance Magnates. "Demand from the institutional market is going to drive the crypto industry forwards. We already see indications of this. Institutional brokers need a robust, risk-managed place to trade as well as access to deep liquidity from different cryptocurrency Market Makers.”

To get the full article and the bigger-picture perspective on the cryptocurrency liquidity evolution, get our latest Quarterly Industry Report.

Intelligence Products | Finance Magnates

About the Author: Sylwester Majewski
Sylwester Majewski
  • 137 Articles
  • 20 Followers
About the Author: Sylwester Majewski
Sylwester is a graduate of the Warsaw School of Economics, holding an MA in Finance and Banking. He currently serves as Head of the Insights & Reporting Hub at Finance Magnates. He is also a former minority partner in an NFA-registered US forex broker and has been involved in numerous forex and trading industry projects since 2003. Privately, Sylwester is a husband and father to a 7-year-old daughter, as well as an enthusiast of trading and Formula 1.
  • 137 Articles
  • 20 Followers

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