Charted: Meme coin liquidity, by exchange
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Meme coin traders should mind the gap between bid-ask spreads on various crypto venues, lest they get wrecked.
- Pros usually do the math on the cost of trading, before they trade.
Why it matters: Meme coins with staying power, like dogecoin, are on various major exchanges like Binance, Coinbase and Kraken, but there are some places that offer better liquidity for certain coins over others.
By the numbers: Average bid-ask spreads for select meme coins on those exchanges over the last 30 days ended June 12, exceeded 2 basis points, or 0.02%, according to Kaiko.
- That suggests that cost of trading remains high, the research firm said in a report published this week, examining trading activity in U.S. dollar and USDT (Tether's stablecoin) trading pairs.
Zoom in: PEPE shows a wide spread, or about 8 basis points, on Binance, compared to Kraken's 3 basis points.
- BONK is more liquid on Binance relative to Kraken.
- DOGE showed tighter spreads on Coinbase and Kraken, but were the narrowest on Binance.
What we're watching: What's not charted here are spreads for celebrity coins like Iggy Azalea's MOTHER, nor ones purported to be politically affiliated like DJT, but trading those also comes with a cost.
