February proved to be a volatile month, with BTC opening at $102k, experiencing a sharp decline to $79k by February 28th, before finding support and closing the monthly candle at $84k. Despite this, during the period from February 1st to February 28th, Keyrock continued to provide consistent liquidity, managed large order flows, and maintained competitive spreads across SSV trading pairs. As a market maker, Keyrock’s role during these volatile periods is critical in ensuring deep liquidity and stable trading conditions, supporting smooth execution for all market participants.
General Market Overview:
Keyrock continued to ensure stable market conditions for SSV, efficiently absorbing large orders while minimizing price impact. Notably, Keyrock accounted for approximately 24-25% of the market volume for key crypto pairs (SSV-BTC and SSV-ETH on Binance). The charts below offer an overview of the SSV market during this period, highlighting Keyrock’s key metrics.
Metric 1: Median Depth within Distance from the Mid-Price
The following charts detail the liquidity depth Keyrock provided for SSV-USDT across Binance, OKX, and Bybit over time. Grouped by basis points (bps) from the mid-price, these charts illustrate our ability to maintain consistent liquidity across different trading pairs, with rebalancing occurring quickly after large trades. The period of inactivity on Bybit was prompted by necessary safety measures following the hack, and trading immediately continued once the risks had been assessed.
Metric 2: Keyrock Market Share
This metric highlights Keyrock’s share of total SSV trading volume. In multiple instances, Keyrock accounted for a significant portion of the market volume. These were were periods where high volatility and volume required deep liquidity depth - in which cases Keyrock became a large percentage of total volume.
Metric 3: Keyrock Total Orderbook Spread
The following charts display Keyrock’s spread performance for SSV trading pairs, demonstrating our ability to provide competitive bid-ask spreads across different pairs. Despite fluctuations in market depth, Keyrock maintained tight spreads, ensuring efficient trading for market participants. on Bybit, Keyrock maintained liquidity with around 20bps spread, and on Binance and OKX around 10bps.
Summary:
Throughout February’s volatility, Keyrock consistently provided deep liquidity, tight spreads, and maintained substantial market share across major SSV trading pairs, ensuring stable trading conditions for market participants.