A bunch of scandals sapped up liquidity in crypto markets last year. But even as prices have recovered in 2023, the so-called “Alameda Gap” has persisted, with liquidity still nowhere near levels notched before FTX collapsed.

Bitcoin market depth is “well below” levels seen in November, the month the now infamous exchange run by Sam Bankman-Fried went under. The quantity of Bitcoin and USDT bids and asks within 2% of the mid-price, as seen across 16 exchanges, hovered around 8,000 this month, about 40% less than in October, according to researcher Kaiko.

Plunges in liquidity usually come during periods of volatility as trading shops pull bids and asks from their order books to better regulate risks, Kaiko noted in November, when it first remarked on the phenomenon and dubbed it the “Alameda Gap.”

“It’s not just Alameda, although they were one of the biggest. Other market-makers took a hit and are being more cautious,” said Riyad Carey, research analyst at the company. “It really depends on the token, but I’d say there’s still a 20-40% gap from previous liquidity levels.”