How Binance Attracts Volume: The Liquidity Flywheel Explained | Kaiko Research, Adam Morgan McCarthy

“Liquidity begets liquidity.” Where order books are deep and volumes high, flow gravitates — and execution quality improves. In this interview, Kaiko Research’s Adam Morgan McCarthy breaks down crypto's liquidity flywheel: how stablecoin‑denominated pairs, market makers, and order book depth metrics shape reliability and execution, why liquidity recovered quickly post‑FTX, and what will drive the next leg in 2026. From the fragmented 2016–2017 exchange landscape to today’s globally quoted stablecoin pairs, Adam explains how structure changes don’t always show up in price — but they do show up in execution. He covers depth vs. volume (“flow follows flow”), the closure of the “FTX gap,” October 2025’s weekend volatility shock, and the catalysts ahead: ETFs, clearer regulation, perps growth, tokenization, and a returning retail bid. *📚 Resource:* ➡️ Kaiko’s Liquidity Flywheel Report on Binance - Liquidity Flywheel Drives Binance to 300 Million Users: https://research.kaiko.com/reports/liquidity-flywheel-drives-binance-to-300-million-users ➡️ Liquidity Flywheel Drives Binance - Binance Blog: https://www.binance.com/en/blog/markets/5468155150803688491 *In this interview, Adam Morgan McCarthy covers:* ✅ Liquidity flywheel explained: why depth + volume attract more flow — and reinforce reliability ✅ 2016–2017 market structure: few venues, clunky UX, limited pairs — and why Binance scaled fast ✅ Stablecoin pairs as a breakthrough: global access, smoother cross‑venue quoting, fewer liquidity gaps ✅ Depth metrics that matter: mid‑price depth at 1–2% bands, bids/asks summed — and spotting volume/depth mismatches ✅ Post‑FTX recovery: how liquidity “closed the gap” across venues and what improved ✅ October 2025 volatility: macro uncertainty + weekend liquidity patterns — and the rapid rebound ✅ Big venues, big debate: why dominant liquid venues aid price discovery and institutional execution ✅ 2026 drivers: ETFs, regulation tone shift, perps expansion, tokenization — and rising retail participation ✅ Institutional signals: hedge funds opening crypto desks as rails mature and counterparty risk falls ✅ Final moment: Adam’s 12–18 month outlook — consistently higher volumes, stronger liquidity floors across top assets *⏱️ Timestamps:* ⏳ 00:00 – Highlights with Adam Morgan McCarthy ⏳ 00:19 – Introducing Adam Morgan McCarthy, Senior Research Analyst at Kaiko ⏳ 01:20 – Before Binance (2016–2017 crypto market), how did it look like? ⏳ 03:50 – Stablecoin‑denominated pairs: how they changed access and liquidity ⏳ 07:12 – What is the "Liquidity Flywheel?" Order book depth vs. volume: measuring health and execution quality ⏳ 09:42 – When did liquidity grow in crypto? ⏳ 11:09 – Challenges in crypto liquidity in 2022-23: recovery process of closing the “FTX gap” and resilience ⏳ 15:05 – October 2025 crypto liquidity shock: what led to it? ⏳ 17:48 – Liquidity movers: any other drivers or key metrics we can use? ⏳ 20:19 – Price compression and institutional confidence ⏳ 21:40 – Is Binance too big for the crypto industry? ⏳ 24:05 – 2026 Outlook: 12–18 months of higher volumes and stronger liquidity floors ⏳ 26:34 – Outro #crypto2026 #CryptoResearch #liquidity #stablecoins #trading #cryptoinvesting #binance #kaiko *⚠️ RISK WARNING:* Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. It is your responsibility to ascertain whether you are permitted to use the services of Binance based on your individual circumstances. Not financial advice. For more information, see our Terms of Use and Risk Warning. *📢 Join the conversation:* ➡️ Twitter/X: https://twitter.com/binance ➡️ Instagram: https://www.instagram.com/binance ➡️ Facebook: https://www.facebook.com/binance ➡️ TikTok: https://www.tiktok.com/@binance ➡️ LinkedIn: https://www.din.com/company/binance ➡️ Reddit: https://www.reddit.com/r/binance *🔗 Download Binance here (iOS, Android):* https://binance.onelink.me/y874/cb98de36 *🔗 Sign up for Binance here:* https://www.binance.com/en?ref=ERQKP7ND&utm_source=BinanceYoutube&utm_medium=GlobalSocial&utm_campaign=GlobalSocial