Ether delivered a stronger Q3 performance than Bitcoin
Ethereum’s native cryptocurrency, Ether (ETH), significantly outperformed Bitcoin (BTC) during the third quarter, but the rally came alongside a notable decline in market liquidity.
ETH climbed about 70% during the quarter, compared with a 42% gain for Bitcoin. Despite the stronger price performance, CoinGecko data showed that Ether became considerably less liquid than it was during the same period a year earlier.
Between July 6 and September 30, Ether’s median daily market depth was only around 35% to 45% of Bitcoin’s depth. During the corresponding period last year, ETH’s market depth had remained at least 60% of Bitcoin’s. CoinGecko described the change as a significant deterioration from the previous year.
Market depth is an important measure of liquidity because it indicates how much buying and selling activity an asset’s order book can absorb without causing a substantial price change. Deeper markets generally allow traders to execute larger orders with less price impact, while thinner markets can react more sharply when large orders enter or leave the market.
ETH still had millions of dollars in nearby orders
CoinGecko measured Ether’s depth at roughly $13 million to $14 million within 0.15% of its market price during the period. This represents the value of buy and sell orders positioned close to ETH’s current trading price.
The 0.15% range is particularly useful for understanding the conditions faced by traders executing relatively close to the prevailing market price. When liquidity is concentrated around the current price, trades can generally be completed with less slippage. When that liquidity declines, comparatively smaller orders can have a greater influence on the market.
However, CoinGecko noted that Ether remains a relatively liquid cryptocurrency despite the decline. Most exchanges still maintained more than $1 million in depth on each side of the order book within 0.15% of ETH’s market price.
The data also challenges the assumption that a major price rally automatically produces deeper markets. Ether recorded a powerful quarterly advance, yet its measured liquidity weakened compared with the previous year.
Solana liquidity also declined
Ether was not the only major cryptocurrency to experience thinner liquidity. Solana’s SOL also saw a considerable reduction in market depth, although CoinGecko assessed SOL using a broader 2% range around its market price.
SOL’s depth within 2% of its market price fell from approximately $28 million on each side of the order book last year to around $20 million this year. The broader measurement captures liquidity farther away from the current price and provides a better indication of how much trading activity a market can absorb during larger price movements.
A decline in liquidity at the 2% level can become particularly relevant during periods of heavy buying or selling. If fewer orders are available across the surrounding price range, a large market order may move through the order book more quickly and produce a larger price impact.
CoinGecko said overall liquidity for SOL had shrunk considerably since 2025, highlighting that the reduction was not limited to Ethereum’s market.
XRP shows a different liquidity profile
XRP presented a different picture during the same period. CoinGecko measured XRP’s total depth at around $30 million, keeping the asset relatively stable compared with the liquidity changes seen in ETH and SOL.
However, XRP’s order book showed a noticeable imbalance between buyers and sellers. The study period had close to $18 million in bids compared with approximately $14 million in asks.
The figures are notable because XRP’s market capitalization was around 40% larger than SOL’s, while its market depth within 2% of the market price was lower. CoinGecko attributed part of the difference to trading activity, noting that SOL recorded roughly 25% more average daily trading volume than XRP.
This illustrates why market capitalization alone does not determine liquidity. Trading volume and the amount of capital available across an order book can also influence how efficiently an asset absorbs buying and selling pressure.
What thinner liquidity means for crypto markets
The Q3 data highlights an important distinction between price performance and market structure. Ether’s 70% quarterly gain demonstrates strong price appreciation, but the decline in market depth means the token did not necessarily become easier to trade in larger size.
For everyday traders, Ether remains highly liquid by cryptocurrency standards, particularly with exchanges maintaining more than $1 million on each side of the book close to the market price. However, thinner liquidity can become more significant during periods of heightened volatility, when large orders can consume available bids or asks more rapidly.
The comparison with Bitcoin, SOL and XRP also shows that liquidity conditions can vary significantly between major digital assets. Bitcoin maintained deeper markets relative to Ether during the period, while SOL experienced declining depth at a wider price range and XRP retained roughly $30 million in total depth.
As crypto markets continue to mature, market depth will remain an important metric alongside price, trading volume and market capitalization. A strong rally can coexist with weaker liquidity, meaning price gains alone do not necessarily indicate that an asset’s market has become deeper or more resilient.
