The market depth of the top 25 crypto assets on Binance.US has fallen by 78% after the Securities and Exchange Commission (SEC) filed a lawsuit against the platform, according to analysts at Kaiko.
They have said:
"Market makers vacated instantly, leaving hardly any liquidity."
Market depth is a key metric that indicates the liquidity and depth of order books, i.e., the volume of buy and sell orders at different price levels.
A lack of liquidity can lead to a significant drop in prices and negatively affect both trading efficiency and the attractiveness of the platform.
Binance.US has previously announced the suspension of USD deposits as of today.
In addition, the platform removed 10 trading pairs along with Bitcoin and its own stablecoin BUSD on June 8, in addition to suspending over-the-counter trading.