Does the Market Depth of a Cryptocurrency Influence the Impact of Information Leakage?

Yes, market depth is a critical factor. Market depth refers to the volume of buy and sell orders at various price levels.

In a market with low depth, even a moderately large order can cause significant price movement (high impact/slippage) if its information leaks. Conversely, a highly liquid market with deep order books is more resilient to information leakage, as there are enough standing orders to absorb the large trade.