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Kraken Surges Ahead In Altcoin Liquidity To Overtake Coinbase In US: Kaiko

The world of cryptocurrency exchanges, often clouded with volatility and competition, has recently been witnessing a distinct shift in dynamics, particularly as a Kraken is taking the lead in the US altcoin trading space.

The latest data reveals Kraken, the California-based crypto exchange, is now dominating its rivals, specifically Coinbase, in the altcoin market.

Dominating The Altcoin Trading Landscape

Data analytics from crypto research firm Kaiko has highlighted Kraken’s emergence as the premier US crypto exchange for altcoin trading. With significant shifts in market depth percentages and a notable increase in market share, Kraken appears to be carving out a niche for itself in an otherwise volatile industry.

Market depth is a crucial metric for crypto exchanges as it represents an exchange’s capability to manage large buy or sell orders without causing drastic price changes. And according to recent data from Kaiko, Kraken now commands roughly 47% of the market depth for the top 10 altcoins.

This dominance, especially in the wake of the previous year’s price drop and the unfortunate collapse of FTX, underscores the resilience Kraken has brought to the altcoin trading sector.

While the entire crypto trading industry has been grappling with declining trading volumes, Kraken has managed to hold its own. A steady uptick in its market share is evident as it jumped from 8.3% in August 2022 to 21.1% in July, according to data from The Block’s dashboard. 

USD support exchange volume market share. | Source: The Block

Behind Kraken Ascendancy

Kraken reportedly attributes this upward trajectory to a few specific improvements in its offerings. Notably, the introduction of Kraken Pro, their advanced trading platform which rolled out in December, is believed to be a pivotal move.

A spokesperson for the crypto exchange elaborated on the exchange’s recent performance, pointing out that their “share of total volumes has hit an 18-month high.”

Furthermore, there’s been a significant surge in their share of EUR spot markets, rising from 35% to 53%, and the AUD spot markets have seen exponential growth, multiplying sixfold over the past year.

Despite the laudable progress, it’s crucial to note that Kraken, like many others in the industry, has felt the effects of the industry-wide decline in trading volumes. Their monthly trading volumes have seen a dip from a high of $28.07 billion in March to $13.6 billion in the previous month.

The global cryptocurrency market cap value on Tradingview amid Kraken news

Featured image from Unsplash, Chart from TradingView

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Trader Who Placed $10 Million Bet Against LUNA Loading Up Reddit’s Moons

In a new development, a trader who placed a substantial $10 million bet against LUNA in May 2022 before the then native currency and UST—the algorithmic stablecoin, collapsed is now setting his sight on Reddit Moons. Going by the moniker “GCR,” on-chain data on August 8 showed the trader moved 450,000 MOON from MEXC Exchange to Kraken.

Moons Rallying

Moons, the ERC-20 token associated with the r/CryptoCurrency forum on Reddit, is firm and on an uptrend, looking at current price action. At spot rates, the token is up 400% from late July and changing hands at $0.47, hovering near 2023 highs. 

Based on price action from MEXC trade data, the immediate resistance level is at $0.65, which was printed in late July 2023. However, with the revival currently visible across the crypto market, prices will likely continue increasing. To illustrate, Moons is already up 90% in August alone, rebounding from $0.25 and surging to spot rates. 

MOON price on August 8 after Moons listing on Kraken| Source: MOONUSDT on Binance, TradingView

Several factors are believed to be fanning demand. One of these is the influence of traders like GCR, who are acquiring Moons and potentially improving sentiment on altcoins considering the recent lower lows recorded in the better part of July.

However, looking at how MOON prices reacted after Kraken’s listing on August 7, the community appears more buoyant and confident of improving liquidity. 

Kraken Listing

As trackers reveal, before the Kraken listing, most Moons trading activity was concentrated on MEXC Exchange. On August 7, Kraken announced its listing of Moons alongside Bricks (BRICK). Alongside the announcement, Kraken said users could deposit MOON and BRICK from the Arbitrum Nova network.

Moons and Bricks are also available for trading on Kraken and Kraken Pro accounts. From Kraken Pro, clients can trade MOON and BRICK perpetual derivatives.

MOON has been described as a “community-driven” token since its launch in May 2020. Within the r/CryptoCurrency subreddit, it serves multiple functions, including rewarding users who contribute positively.

Reddit said Moons’ holders can access premium features, including badges and custom emojis, and tip fellow community members. Moreover, holding Moons grants voting power in subreddit polls, affording holders a say in shaping the subreddit’s future. 

Arbitrum data on August 8 shows over 121 million Moons in circulation. Out of this, more than 206,000 holders have generated over 670,000 transfers. All Moons are stored on Vault, the mobile-based wallet launched in 2022.