A recent report by Kaiko indicates that liquidity for privacy-focused altcoins has plummeted to an all-time low of $5 million. This decline accelerated following the delisting of several privacy coins by OKX for failing to meet certain criteria, and similar actions by Binance, the largest cryptocurrency exchange.
Liquidity for tokens like Monero (XMR), Zcash (ZEC), DASH, and ROSE, measured by 1% market depth, has drastically decreased to $5 million after OKX removed several trading pairs. Despite a gradual increase in trading volumes since October, they remain significantly below 2021 levels.
Heightened regulatory pressures, particularly affecting coins such as XMR and ZEC, have pushed leading exchanges like Binance to the brink of delisting low-liquidity altcoins. The market’s changing landscape has been marked by notable developments, including a surge in trading volumes on South Korean exchanges during a recent sell-off, with Bitcoin’s (BTC) market share reaching a level not seen since 2020.
These shifts in trading dynamics have occurred despite increasing regulatory pressures in South Korea, including proposed rules for crypto exchanges and bans on purchasing cryptocurrencies with credit cards.
Amidst these changes, Solana (SOL) has emerged with a positive trend, occasionally surpassing the combined trading volume of Bitcoin and Ethereum (ETH) on some exchanges, indicating a shift in the altcoin market dynamics against ETH.