Institutional capital allocation in digital assets has increasingly concentrated in primary tokens, reducing market depth across secondary altcoins. Treasury desks and spot ETF managers continue to favor regulatory clarity and high-liquidity order books.
Market Microstructure Adjustments
Data from major spot exchanges shows top-tier market makers reducing order depth for medium-cap assets by 35%. This liquidity contraction has heightened slippage risks for algorithmic traders operating outside top-five digital currencies.