Liquidity Crisis Causes Major Price Slippages During Cryptocurrency Sell-Offs: Kaiko

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Liquidity Crisis Causes Major Price Slippages During Cryptocurrency Sell-Offs: Kaiko
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The cryptocurrency market is facing a growing liquidity crisis, as evidenced by the significant price slippages observed during recent sell-offs.

Price slippage, an indicator of liquidity, tends to rise during market sell-offs as liquidity dries up, complicating order execution at desired prices. Kaiko’s datathat on August 5th, price slippage increased across most exchanges, with certain platforms and trading pairs experiencing more severe spikes.

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