According to data tracked by CCData, the liquidity of Ethereum (ETH) order books has been on the decline since the debut of nine Ethereum spot ETFs on July 23.
Since the launch of these ETFs, the average 5% market depth for ETH trading pairs on U.S.-based centralized exchanges (CEX) has dropped by 20%, falling to approximately $14 million. On offshore centralized exchanges, the figure has decreased by 19%, reaching about $10 million. In other words, it is now easier for the spot price to rise or fall by 5%, indicating reduced liquidity and increased sensitivity to large orders.
Jacob Joseph, a research analyst at CCData, noted that while the liquidity levels of ETH trading pairs on centralized exchanges are still higher than at the start of the year, they have declined by nearly 45% since peaking in June. This decline is likely due to poor market conditions and seasonal factors, such as reduced trading activity typically seen during the summer months.