Ethereum Outperforms Bitcoin in Q3 but Sees Liquidity Waning

Ethereum's price rose 70% in Q3, far outperforming Bitcoin's 42% gain, which settled at $85,809.16. The native Ethereum token trades at $2,710.13, but its ease of trading has significantly deteriorated, as CoinGecko's latest report reveals.

Ethereum Beats Bitcoin in Q3 with 70% vs. 42% Gains

From July 1 to September 30, Ethereum delivered an exceptional performance, climbing 70% while Bitcoin rose just 42%. This divergence in returns has bolstered investor interest in the Ethereum protocol, often seen as the innovation driver of the crypto sector. Despite this momentum, the price surge wasn't accompanied by a proportional increase in order book depth, a critical factor for market stability.

Ethereum's $2,710.13 price marks a quarterly high, but volatility remains elevated, especially when large orders encounter restricted liquidity. CoinGecko analysts note that the price rally hasn't drawn a massive influx of new participants, challenging the notion that rising prices automatically attract more liquidity.

Ethereum Liquidity Plummets to 35-45% of Bitcoin's

From July 6 to September 30, Ethereum's average daily market depth stood at 35% to 45% of Bitcoin's, down from over 60% during the same period last year. CoinGecko describes this as a "stark drop from last year's figures," or "une chute brutale par rapport aux chiffres de l'année dernière." This contraction highlights a significant reduction in available orders near the price level.

Reduced market depth means large transactions can quickly move the price, increasing slippage risk for institutional traders and big investors. The contrast with the previous quarter underscores that liquidity isn't automatically correlated with price performance, a key takeaway for market participants.

Ethereum Market Depth at $13-14M Near 0.15% of Price

CoinGecko notes Ethereum had $13 to $14 million in order book depth within 0.15% of its current price. In other words, this is the immediate buy and sell volume that could be executed without moving the price by more than 0.15%. This metric is crucial for daily operations and market-making strategies.

Despite this figure, most exchanges maintain over $1 million in depth on both sides of the order book. According to CoinGecko, this leaves "ETH remains fairly liquid at this range." Thus, while overall liquidity has declined, the token remains relatively tradeable for medium-sized orders.

Solana Liquidity Drops 28M to 20M

CoinGecko's report also highlights Solana (SOL) liquidity shrinking from roughly $28 million on both sides last year to nearly $20 million this year, within a 2% price range. The firm notes, "The overall liquidity for SOL has shrunk considerably since 2025." This decline reflects a broader trend of reduced depth across major crypto assets.

The decrease in Solana's liquidity, measured over a wider price range than Ethereum's, indicates that crypto markets can face distinct liquidity pressures depending on price proximity. Traders using swing or medium-term strategies must adjust their risk models accordingly.

Implications for Ethereum Daily Trading

For active traders, Ethereum's liquidity contraction means large orders could cause more pronounced slippage, especially during heightened volatility. Exchanges offering deep order books remain preferred, as they enable minimizing slippage with over $1 million in depth on both sides.

French investors using PEA or CTO accounts cannot directly access Ethereum, but liquidity dynamics can influence crypto-linked derivatives or European-listed crypto funds. Reduced liquidity could widen bid-ask spreads, impacting the cost of crypto ETFs or Ethereum-related futures.

Ultimately, Ethereum's spectacular price surge isn't matched by improved market depth, a factor that could curb institutional investors' appetite. As CoinGecko notes, while liquidity "remains fairly liquid," the trend toward contraction warrants close monitoring, particularly for high-frequency trading or cross-exchange arbitrage strategies.