Analysis: The Evolution of Cryptocurrency Liquidity
- Finance Magnates takes a closer look at how cryptocurrency liquidity has evolved.
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 Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term 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 Ethereum Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Read this Term, 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.
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.
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 Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term 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 Ethereum Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Read this Term, 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.
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.