Here’s Why XRP Whales May Prefer U.S. Exchanges Over Offshore Venues

On Thursday, U.S. trading platforms such as Nasdaq-listed Coinbase (COIN) and Kraken showed a market depth of approximately $1.12 million, equating to about 1%, offering a 30% increase in liquidity compared to offshore exchanges like Binance and OKX, based on data monitored by CCData.

As an analyst, I’m explaining that a significant trade of at least $1.12 million is required to shift the current market price by 1% on U.S. exchanges. In contrast, a comparatively smaller trade could produce the same impact on foreign or offshore markets.

As a researcher, I’ve noticed an intriguing trend in the financial markets: The 1% market depth on U.S. exchanges has seen a substantial 53% growth compared to last July. This rate of increase outpaces the 43.2% enhancement observed on offshore trading platforms over the same period.

Market depth, in simpler terms, represents a market’s ability to absorb substantial buy and sell orders without causing noticeable changes in the current asset’s trading price. This capacity is measured by examining the quantity of active buy and sell orders at different price points.

In simpler terms, the 1% depth refers to a measurement that examines transactions close to the current exchange rate for a particular currency. A higher depth indicates better liquidity, making it easier to complete significant trades with minimal price differences (slippage), while a lower depth suggests poorer liquidity and potential larger price differences when executing large orders.

It’s quite possible that the enhanced trading conditions on American stock markets are due to a decrease in regulatory uncertainties.