Ethereum's native token gained nearly 70% during the third quarter of 2026, significantly outperforming Bitcoin's roughly 42% increase. However, according to CoinGecko analysis cited by CoinDesk on October 5, 2026, this rally occurred on a weakening foundation of liquidity.
A CoinGecko study measuring median daily market depth within ±0.15% of mid-price found that ether's depth had contracted sharply relative to Bitcoin. ETH's depth now represents only 35% to 45% of Bitcoin's equivalent level, compared with at least 60% in the corresponding period of 2025. The analysis examined data from eight major centralized exchanges, where ETH depth averaged $13 to $14 million across the study period from July 6 to September 30.
An unusual pattern
Typically, rising prices and increased trading volumes accompany deeper liquidity. Ether's third quarter broke this pattern, with prices and volumes rising while depth contracted relative to Bitcoin. Solana exhibited a similar liquidity decline over the period, while XRP held steady depth with a buyer-dominated balance.
Ether closed the quarter trading near $2,689 after touching intraday highs near $2,775. Bitcoin ended between $83,640 and $86,000.
Potential drivers and implications
The research points to returning inflows into US spot ETH ETFs as a likely driver of the rally. Net inflows reached approximately $3.1 billion, reversing earlier outflows. ETF demand can elevate prices without adding depth to exchange order books, as fund flows and resting limit orders operate through different channels.
Thinner order books increase slippage—the difference between expected and actual execution prices. Traders executing large ETH orders may experience greater price movement than equivalent Bitcoin trades, potentially requiring them to split orders across venues or extend execution over time.
Shallow liquidity can amplify both rallies and selloffs, as participants quickly move through available orders on either side. The convergence of thinning liquidity across multiple major non-Bitcoin assets raises the question of whether market makers are concentrating capital more heavily in Bitcoin, though XRP's stable depth suggests the trend is not universal.
