According to a report by CoinDesk on October 17, Coinbase has assured its users that trading conditions on its platform remain stable amidst ongoing concerns stemming from the U.S. Securities and Exchange Commission (SEC) lawsuit involving market maker Cumberland. A company representative stated, “This month, we have not observed any notable fluctuations or reductions in the BTC-USD market depth, which remains around 2%.” Data analytics firm Kaiko highlighted that the 2% BTC depth on Coinbase experienced a substantial drop starting at 18:00 UTC on October 10, plummeting by 46% to 267 BTC within hours. The 2% market depth is a crucial indicator that measures liquidity by illustrating the volume of buy and sell orders within a 2% range of the midpoint price, ensuring that participants can execute large transactions with minimal slippage.
Source: https://en.coinotag.com/breakingnews/coinbase-denies-bitcoin-liquidity-concerns-amid-sec-lawsuit-reports-only-minor-changes/