Introduction
Welcome to this week’s Tapbit Market Liquidity Report. This report aims to provide a comprehensive analysis of Tapbit’s liquidity in comparison to other leading trading platforms. As a key assessment indicator for the crypto platform, liquidity directly impacts user experience and the transaction. Through this report, we hope to offer clear market insights to help users make informed trading decisions.
Assessment Metrics
In order to effectively assess the liquidity of a crypto platform, we usually consider the following 3 key indicators:
Order Book Depth: It reflects the number of buy & sell orders at various price levels; deeper order books indicate better liquidity.
Slippage: The difference between the expected execution price and the actual execution price; lower slippage means more accurate trade execution.
Bid-Ask Spread: The difference between the best buy & sell prices; a smaller spread indicates higher market efficiency and liquidity.
In this report, we will focus on comparing and analyzing the order book depth & slippage.
Data Collection Methodology
To ensure the accuracy and comparability of data, we will:
Utilize public APIs from each platform to obtain real-time data.
Compare the BTC/USDT trading pair on 3 exchanges each.
Collect data for the same period to avoid market volatility.
Multiple rounds of sampling to improve data reliability.
Tapbit Weekly Key Performance
This week, Tapbit has performed exceptionally on these key metrics:
BTC/USDT 24-Hour Trading Volume: 3,864 BTC
BTC/USDT Order Book Depth (±2% Price Range): Approximately 557 BTC
BTC/USDT Average Bid-Ask Spread: 0.00013%
Liquidity Comparison with Major Trading Platforms
4.1 Market Depth Comparison
Based on the above order books, we performed a detailed comparative comparison and analysis of Tapbit, A, and B exchanges in terms of market depth, price range, and individual order sizes.
Market Depth: From the order book above, we can clearly see that the order depth on Tapbit significantly exceeds that of exchanges A and B. It reflects Tapbit’s ability to attract volume and liquidity providers. Additionally, its order depth distribution is relatively balanced, which will help keep the market stable and reduce the impact of big size trades on prices.
Price Range: In terms of price, we can find that it shows a broader price range on Tapbit, which provides traders with more comprehensive market depth information. And, A exchange has a narrower price range, while B exchange falls in the middle.
Size of Single Order: In terms of the size of a single order, it is not difficult to see that the maximum size of a single order on Tapbit even exceeds that of Exchange A and Exchange B. This will enable it to better meet the needs of large traders and institutional investors and provide a more favorable trading execution environment.
To put it simply, Tapbit demonstrates strong competitive advantages in two main aspects.
Firstly, it has outstanding liquidity. Tapbit’s total depth is significantly greater than others. This creates an ideal environment for the execution of large trades, ensuring smooth and efficient trading processes.
Secondly, it has strong market stability. The balance within the order book is crucial as it helps in reducing price fluctuations. This allows the market to remain in an orderly state, providing a more reliable and stable trading environment for users.
4.2 Estimated Slippage Comparison for Large Transactions
Moreover, we conducted slippage tests for large trades at both $1 million and $3 million transaction sizes across three exchanges.The result as below,
At the $1 million transaction, the estimated slippage was an impressive 0.001%, and at the $3 million size, it only increased slightly to 0.006% on Tapbit, both of which are lower than those of the other two leading exchanges.
The result above shows that for medium – to large – sized contract orders, Tapbit can effectively find enough trading counterparts within the existing order book. This means that traders can get better prices when they execute their trades and can reduce the costs caused by slippage.
Conclusion
In conclusion, compared to the other two major exchanges, Tapbit has slightly outperformed them this week in terms of market depth and estimated slippage, showcasing its advantages and significant potential. While there is still room for improvement in certain metrics, the overall performance has been impressive. We will continue to focus on optimizing our trading system to provide exceptional liquidity and create a better trading environment for our users.
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