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What Is the Impact of a Stablecoin’s Bid-Offer Spread Compared to a Volatile Altcoin?

Stablecoins have minimal volatility and high liquidity, resulting in spreads that are much tighter than those of volatile altcoins.
Greeks.Live10.11.25

What Is the Impact of a Stablecoin’s Bid-Offer Spread Compared to a Volatile Altcoin?

Stablecoins, by design, aim for minimal price volatility and have extremely high liquidity, especially those pegged to the US Dollar. Consequently, their bid-offer spreads are typically among the tightest in the crypto market, often fractions of a cent.

A volatile altcoin, with its high price risk and lower liquidity, will have a significantly wider spread, reflecting the higher transaction cost and risk premium required by market makers.

How Can Decentralized Exchanges (DEXs) Impact Altcoin Liquidity Compared to Centralized Exchanges (CEXs)?
Why Do Centralized Exchanges (CEX) Often Have Tighter Spreads for Altcoins than Decentralized Exchanges (DEX)?
Why Are Low-Cap Altcoins More Susceptible to Extreme Spread Widening during Market Stress?
Why Do Stablecoins Typically Have a Very Narrow Bid-Offer Spread?

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