According to Kaiko analysts, the ability to make large-scale trading transactions with digital assets without a noticeable impact on their prices has noticeably decreased after the collapse of FTX.
They have written:
“The cryptocurrency market is dominated by just a few market makers, including Wintermute, Amber Group, B2C2, Genesis, Cumberland and [now defunct] Alameda. With the loss of the latter, we can expect a significant drop in liquidity, which we called the “Alameda Gap.”
They estimate order book market depth on Kraken, Binance and Coinbase has collapsed by 57%, 25%, and 18%, respectively, since the collapse of FTX.
Regarding weekly trading volumes on exchanges, they more than doubled to $100 billion. Huobi, Bitfinex and BitMEX metrics showed the sharpest decline.