Market depth analysis according to Ethereum Classic (etc.)
The cryptocurrency market has grown rapidly in recent years, as many altcoins and chips have appeared well. Among them, Ethereum Classic (ETC) was interested in investors looking for alternative assets in traditional cryptocurrencies such as Bitcoin (BTC). One essential aspect of the success of the ETC is its ability to maintain the depth of the market, which indicates how much liquidity is in the market.
Market depth: liquidity measure
Liquidity in cryptocurrency markets can be measured by several indicators. Market depth analysis provides more nuanced than a simple metric, such as trade volume or price movement. This evaluates how easy the property can buy and sell, taking into account various factors such as ordering books, price differences and operations time.
Ethereum Classic (ETC) market analysis
In the light of the ETC, market depth analysis provides valuable insights into its trade activities. As one of the oldest and most stable Altcoins and others. He maintained liquidity in their markets. Here’s how to analyze the depth of the market, etc.:
- Order Book Sizes
: Larger order book size indicates higher liquidity. To evaluate this, look at the maximum number of transactions that can be carried out in an exchange or platform. In the case of the ETC, the largest order books are usually leading exchange such as Binance and Kraken.
- The narrower price difference indicates higher liquidity. The ETC proposals and the differences are relatively stable when prices range from about 2-5 infantry.
- Faster operation time indicates a better market depth. The average transaction time is approximately 4-5 seconds, which is competitive with other Altcoins.
- Order flow : order flow analysis reveals the direction of market mood. If many orders are executed in one direction (eg when purchasing), this may mean high demand for these assets. Conversely, if many orders fall on the market or leave the market, it may mean market volatility.
ETC market depth analysis examples
To show how to apply market depth analysis, etc., consider the following examples:
* Binance vs Kraken : 2020 The binans were significantly liquid than in Kraken, etc. The largest Binance order book was more than 50 million transactions and the maximum number of Kraken goods ranged about 10-20 million.
* Order Book size by exchange : Coinmarketcap investigation found that KT. Were the following order book sizes:
+ Binance: 1.3 billion transactions
+ Kraken: 540 million trading
+ Huobi Pro: 290 million transactions
+ OKEX: 220 million transactions
Conclusion
Market depth analysis in the context of Ethereum Classic provides a more detailed understanding of its trade and liquidity. By analyzing various metrics such as ordering book sizes, price differences on price, transaction time and order flows, investors can gain insight into market dynamics and make more reasonable decisions on purchase and sale.
As the cryptocurrency market changes further, investors need to constantly update the market depth analysis in other Altcoins. By doing so, they can succeed in a successful changing market environment.
