Ethereum Outperforms Bitcoin in Q3 but Faces Liquidity Contraction
Ethereum saw a 70% price gain in the third quarter of 2026, yet data indicates that market depth has thinned significantly compared to Bitcoin.
Ethereum posted a strong third quarter in 2026, with its native token climbing nearly 70%. This performance outpaced Bitcoin, which saw a gain of roughly 42% during the same period. However, an analysis from CoinGecko suggests that this price rally occurred alongside a notable reduction in market liquidity.
The study, which tracked data from July 6 to September 30 across eight major centralized exchanges, measured median daily market depth within 0.15% of the mid-price. By this metric, Ethereum’s depth is currently between 35% and 45% of Bitcoin’s level. This represents a decline from the 60% ratio observed during the same period in 2025.
In absolute terms, Ethereum’s depth in this tight band averaged between $13 million and $14 million. While most major trading venues maintained over $1 million in depth on both sides of the book, the overall contraction means that larger orders may face increased slippage. Traders executing significant volume may find that their trades move the price more than they would in a deeper market, potentially requiring them to split orders across multiple venues or timeframes.
The divergence between rising prices and shrinking liquidity is unusual, as these metrics typically move in tandem. The research suggests that the rally was likely driven by net inflows into US spot ETH ETFs, which totaled approximately $3.1 billion. Because ETF demand does not necessarily translate into resting limit orders on exchange books, this capital influx may have pushed prices higher without bolstering market depth.
Other assets showed mixed results during the quarter. Solana experienced a similar decline in liquidity, while XRP maintained steady depth with a bias toward buying pressure. As of the end of the quarter, Ethereum closed near $2,689 after reaching intraday highs of $2,775, while Bitcoin traded between $83,640 and $86,000.
The thinning of order books can amplify both rallies and selloffs, as there is less capital parked near the current price to absorb large trades. Whether this trend of concentrated liquidity in Bitcoin continues across other non-Bitcoin assets remains a point of interest for market participants.
