BNB’s Liquidity Fell In Q4 2023, Bitcoin, XRP, And Dogecoin Lead

Dalmas Ngetich

1 year ago

2 mins read

BNB liquidity Binance Dogecoin Bitcoin Ethereum XRP

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Amidst regulatory scrutiny and leadership changes, Binance Coin (BNB) lost its footing in the liquidity race, slipping to 13th place in Q4 2023, according to Kaiko data on January 11. This surprising development contrasts BNB’s position as the third-largest cryptocurrency by market capitalization, raising questions about its general liquidity.

Dogecoin Flips BNB In Liquidity Rankings

Kaiko’s findings, based on spot trading data from multiple exchanges, revealed that Bitcoin (BTC), Ethereum (ETH), XRP, and Dogecoin (DOGE) emerged as the top four most liquid cryptocurrencies in Q4 2023.

Q4 2023 token liquidity rankings | Source: Kaiko

Liquidity is a metric that shows how easily a given asset can be traded without significant price impacts. One of the biggest assumptions is that a crypto asset higher up the market cap ranking is more liquid. However, as Kaiko data shows, this is not usually the case, as factors such as exchange listing play a big role.

DOGE flipping BNB in liquidity dynamics may be attributed to a combination of factors, including regulatory concerns surrounding Binance, leadership changes within the company, and the status of Dogecoin. DOGE is the first meme coin, and over the years, it has continued to cement its place as the world’s largest meme coin by market cap despite heavy competition. To illustrate, despite the popularity of alternatives like PepeCoin (PEPE) or Bonk coin (BONK), none has managed to flip DOGE.

Binance Legal Battles, Price Recovers Steadily

In 2023, Binance grappled with legal battles and internal restructuring. In early June 2023, the Securities and Exchange Commission (SEC) filed charges against the exchange, alleging that it had violated securities laws by selling unregistered securities. Additionally, Binance founder and CEO Changpeng Zhao stepped down from his executive role in late Q4 2023, further adding to the exchange’s uncertainty.

Despite its legal troubles, Binance agreed to pay a $4.3 billion settlement with the SEC and other US agencies in late 2023. While this settlement may have eased some regulatory concerns, it is unclear whether it will be enough to restore BNB’s liquidity position.

So far, looking at the daily chart, BNB has been trending higher, quickly shaking off the weakness of late November 2023. After Changpeng Zhao, the founder, exited as the CEO, BNB prices sharply fell. However, without follow-through and the community remaining optimistic about the platform’s prospects, prices recovered as the broader crypto scene rose, hoping the SEC would approve the first spot Bitcoin ETF.

BNB price trending upward on the daily chart | Source: BNBUSDT on Binance, TradingView

BNB is up 37% from November 2023 lows and is stable, looking at the performance in the daily chart. As a bull flag forms, it is unclear whether the coin will break higher above $340, establishing new 2024 highs or contract following Bitcoin.

Feature image from Canva, chart from TradingView

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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