Kaiko Explained: Which Are the Most Liquid Altcoins?

He produced a report on the latest findings from market intelligence firm Kaiko. Accordingly, Solana (SOL) has managed to become one of the most liquid altcoins on the leading crypto exchange Coinbase. SOL has eclipsed the popular meme coin, Dogecoin (DOGE). Moreover, it has outstripped leading altcoins like XRP and MATIC.

SOL has managed to become one of the most liquid altcoins on Coinbase

According to Kaiko’s report, Solana has over $3 million in liquidity. Meanwhile, SOL price fell amid market-wide pessimism. However, it stands relatively firm among major altcoins. Besides, according to experts, the solid foundations of SOL signal that there will be promising times ahead. As you follow on Kriptokoin.com, a tokenized version of Bitcoin has been introduced on the Solana network. This adds to its foundations as a promising development for Solana.

Solana surpasses competitors in liquidity among altcoins

Liquidity refers to the ease with which an asset can be converted into cash without affecting its market price. The more liquid an asset is, the more efficiently it can be converted into cash. SOL’s high liquidity on Coinbase means it can be easily traded without causing significant price fluctuations. This makes it an attractive investment option. Solana’s liquidity exceeds $3 million. The liquidity of the popular meme coin Dogecoin is just over $2 million. On the other hand, XRP and MATIC each have a little over $1 million in liquidity. Thus, SOL is taking firm steps forward, leaving its rivals DOGE, XRP and MATIC behind.

Altcoin liquidity chart on Coinbase. Source: Kaiko

Despite its liquidity advantage, Solana has not been immune to the recent downturn of the broader market. The crypto market has been shaken by speculation that the SEC will delay its decisions on Bitcoin ETF applications until 2024. As a result of this development, SOL price fell 5.62% on a weekly basis to $23.09. Meanwhile, the SOL has lost nearly 13% in the past month. However, despite the short-term downturn, Solana remains fundamentally strong, according to experts.

A look at optimism for Solana

According to experts, there are reasons to be optimistic about Solana’s future. The most notable of these is the recent launch of a tokenized version of Bitcoin, known as tBTC, on Solana’s network. Like Wrapped Bitcoin (WBTC) on leading altcoin Ethereum, tBTC will increase Solana usage by allowing BTC holders to redeem their Bitcoin values ​​across various DeFi platforms and applications.

As you may recall, Solana experienced many network outages in 2022. Moreover, these network outages marked the past year. That said, Solana has a stable outlook this year. That is, it seems to have outlived the network outages. The network now has a consistent 100% uptime. Experts expect the release of new launches and use cases like tBTC to further support Solana’s steady recovery throughout the year.