Ethereum has had a significant expansion in liquidity over the past three months, with aggregated 2% market depth rising from $278.35 million on April 25 to $393.34 million on July 21.
This 41% increase comes from a clear buildup in resting orders on both sides of the order book, suggesting heightened participation by market makers and a larger buffer for volatile trading sessions.
However, the sharp spike in trading activity on July 21 compressed the depth-to-volume ratio to a multi-month low, pointing to growing but still limited capacity in absorbing fast-moving flows.
The bid/ask composition on July 21 showed a mild tilt toward the sell side, with $209.99 million in ask-side liquidity and $183.35 million on the bid side within the 2% range. While not dramatically imbalanced, the $26.64 million gap hints at cautious upward resistance, possibly due to profit-taking or hedging behavior following Ethereum’s recent rally.
More notably, US-based exchanges now account for 50.29% of global 2% market depth, regaining parity with offshore platforms.
This marks a shift from April, when US platforms fell slightly below the 50% threshold. Kraken and CEX.IO were the primary drivers of this move, holding 31.2% and 29.97% of the US market share, respectively, while Coinbase trailed with just 18.54%. Coinbase’s decline in depth share may stem from recent adjustments to its fee structure, which have reportedly reduced market maker incentives.
On the global side, Binance retained its dominance with 44.53% of all 2% ETH liquidity, followed by Bitfinex at 12.64% and OKX at 12.59%. While Binance continues to serve as the market’s central liquidity hub, its share has slipped slightly in recent weeks. Bitfinex and OKX have gained modest ground, reflecting a gradual redistribution of liquidity across high-frequency trading venues.
Despite this shift, Binance remains the most popular venue for Ethereum trading by far. On July 21, Binance processed 47.24% of total centralized exchange (CEX) spot ETH volume, equivalent to roughly $7.08 billion of the day’s $15.00 billion total. Crypto.com and Bybit followed at 12.55% and 7.59%, respectively, with Coinbase handling just 5.87% of the global CEX flow.
The gap between market depth and actual volume was most evident in the context of July 21’s trading. Spot volume surged to $15.00 billion, up from $5.36 billion on June 25 and just $4.15 billion in May. This followed a modest expansion in 2% depth (from $330.69 million to $393.34 million), compressing the depth-to-volume ratio from 6.2% to 2.6%.
In practical terms, this means the order book became relatively thinner compared to the size of flow it needed to absorb, increasing the risk of slippage had the trading persisted into lower-liquidity zones.
The sharp drop in the depth-to-volume ratio on July 21 shows how market activity can quickly outpace order book expansion, even when liquidity appears to be growing. It also highlights the limits of book-based metrics when faced with volatile or event-driven flows.
When it comes to decentralized exchanges, DEX trading volumes remain comparatively stagnant. On July 21, DEXs processed just $699.51 million (about 4.5% of the day’s CEX volume), despite the overall surge in activity. This ratio has barely changed since April, when DEX volumes stood at $309.78 million versus $5.79 billion in CEX flow. While on-chain trading remains popular among retail and arbitrage segments, large participants continue to rely on centralized venues due to better execution guarantees and lower friction costs.
Interestingly, the ETH/USD price on Binance traded between $3,703 and $3,859 on July 21, closing at $3,764. This 4.2% intraday move is relatively contained given the nearly $15 billion in spot turnover. It suggests that the expanded order book depth did play a role in dampening volatility, even amid heightened activity. Ethereum saw a 6.1% intraday swing during a similar volume event in mid-May, when order book depth was significantly thinner.
We can draw several important conclusions about the market based on this data. First, while market depth is improving in absolute terms, the gap between liquidity and real-time volume is still wide during peak sessions. Second, the shift in depth share toward US venues signals possible market maker repositioning in anticipation of a more favorable regulatory stance or evolving operational constraints abroad. Third, Binance’s role as a liquidity and execution venue remains structurally important. Even as depth redistributes, its unmatched trade volumes influence price discovery.
Lastly, the relative weakness of DEX volumes highlights persistent structural barriers to broader adoption. These include gas fees, slippage tolerance, and latency issues, all challenges that remain unresolved despite the growth of L2s and routing aggregators.
Overall, Ethereum’s liquidity profile shows material progress, particularly in resting order depth and venue diversification. Yet the ecosystem continues to rely heavily on a few dominant players for both liquidity and volume.
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