This year has seen a significant increase in liquidity across crypto exchanges, as reported by the digital asset analytics firm Kaiko. The surge in liquidity is attributed to a rise in trading volume and improved market sentiment, particularly noticeable in Bitcoin (BTC) markets in the US.

Kaiko’s latest analysis highlights that the approval of spot BTC ETFs in the US has played a role in this increase, with more institutional firms entering the market. Currently, US exchanges make up over 60% of BTC’s 1% market depth, up from approximately 45% at the start of 2023.

The analytics firm also points out that Bitcoin dominance compared to altcoins has risen on US exchanges but decreased on offshore markets. Historically, BTC dominance has been higher on US platforms due to greater institutional involvement, with traders showing a preference for BTC over riskier altcoins. Despite BTC’s price decline in Q2, its share on US markets continued to grow, indicating that the introduction of spot ETFs could further strengthen this trend.

Kaiko is not alone in recognizing this trend, as Ki Young Ju, CEO of the analytics platform CryptoQuant, recently mentioned on the social media platform X that Bitcoin is gaining traction in the US.

As of the time of writing, BTC is trading at $66,381.

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