United for Profits
  • Personal Finance
  • Cryptocurrency
  • Strategy
  • Business
  • Retirement
  • Personal Finance
  • Cryptocurrency
  • Strategy
  • Business
  • Retirement
No Result
View All Result
United for Profits
No Result
View All Result
Home Cryptocurrency

BNB’s Liquidity Fell In Q4 2023, Bitcoin, XRP, And Dogecoin Lead

by
January 12, 2024
in Cryptocurrency
0
BNB’s Liquidity Fell In Q4 2023, Bitcoin, XRP, And Dogecoin Lead

Amidst regulatory scrutiny and leadership changes, Binance Coin (BNB) lost its footing in the liquidity race, slipping to 13th place in Q4 2023, according to Kaiko data on January 11. This surprising development contrasts BNB’s position as the third-largest cryptocurrency by market capitalization, raising questions about its general liquidity.

Dogecoin Flips BNB In Liquidity Rankings

Kaiko’s findings, based on spot trading data from multiple exchanges, revealed that Bitcoin (BTC), Ethereum (ETH), XRP, and Dogecoin (DOGE) emerged as the top four most liquid cryptocurrencies in Q4 2023. 

Liquidity is a metric that shows how easily a given asset can be traded without significant price impacts. One of the biggest assumptions is that a crypto asset higher up the market cap ranking is more liquid. However, as Kaiko data shows, this is not usually the case, as factors such as exchange listing play a big role.

DOGE flipping BNB in liquidity dynamics may be attributed to a combination of factors, including regulatory concerns surrounding Binance, leadership changes within the company, and the status of Dogecoin. DOGE is the first meme coin, and over the years, it has continued to cement its place as the world’s largest meme coin by market cap despite heavy competition. To illustrate, despite the popularity of alternatives like PepeCoin (PEPE) or Bonk coin (BONK), none has managed to flip DOGE.

Binance Legal Battles, Price Recovers Steadily

In 2023, Binance grappled with legal battles and internal restructuring. In early June 2023, the Securities and Exchange Commission (SEC) filed charges against the exchange, alleging that it had violated securities laws by selling unregistered securities. Additionally, Binance founder and CEO Changpeng Zhao stepped down from his executive role in late Q4 2023, further adding to the exchange’s uncertainty.

Despite its legal troubles, Binance agreed to pay a $4.3 billion settlement with the SEC and other US agencies in late 2023. While this settlement may have eased some regulatory concerns, it is unclear whether it will be enough to restore BNB’s liquidity position. 

Related Reading: Ethereum Classic (ETC) Explodes Over 50% In Massive Price Jump – Here’s Why

So far, looking at the daily chart, BNB has been trending higher, quickly shaking off the weakness of late November 2023. After Changpeng Zhao, the founder, exited as the CEO, BNB prices sharply fell. However, without follow-through and the community remaining optimistic about the platform’s prospects, prices recovered as the broader crypto scene rose, hoping the SEC would approve the first spot Bitcoin ETF.

BNB is up 37% from November 2023 lows and is stable, looking at the performance in the daily chart. As a bull flag forms, it is unclear whether the coin will break higher above $340, establishing new 2024 highs or contract following Bitcoin.

Previous Post

Bitcoin Erases $49,000 ETF Rally As Coinbase Users Take To Selling

Next Post

Ethereum Price Prediction: Analyst Predicts 100% Rise Against Bitcoin

Next Post
Ethereum Price Prediction: Analyst Predicts 100% Rise Against Bitcoin

Ethereum Price Prediction: Analyst Predicts 100% Rise Against Bitcoin

Exchange Rate

Exchange Rate USD: Mon, 7 Jul.

Enter Your Information Below To Receive Trading Ideas and Latest News

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
    • About Us
    • Contact Us
    • Privacy Policy
    • Terms & Conditions
    • Email Whitelisting

    Copyright © 2025 unitedforprofits.com All Rights Reserved.

    No Result
    View All Result
    • Personal Finance
    • Cryptocurrency
    • Strategy
    • Business
    • Retirement

    Copyright © 2025 unitedforprofits.com All Rights Reserved.