Phemex boosts liquidity following rollout of upgraded RPI system

 Key Takeaways

·         Phemex has implemented an upgraded Retail Price Improvement (RPI) system.

·         The exchange says liquidity has increased across more than 210 trading pairs.

·         The upgrade focuses on improving execution quality for retail traders.

Phemex has rolled out an upgrade to its Retail Price Improvement (RPI) system, a move the cryptocurrency exchange says has resulted in higher liquidity and deeper order books across its platform. The development adds to a growing list of infrastructure-focused changes by centralized exchanges seeking to improve execution quality amid heightened competition and scrutiny.

According to the exchange, the RPI upgrade is now live across more than 210 trading pairs, covering both major crypto assets and a broad range of secondary markets. Phemex said the changes are intended to enhance price formation and reduce slippage for retail participants by refining how retail orders interact with available liquidity.

Background on RPI systems

Retail Price Improvement mechanisms are designed to give certain priority or structural advantages to retail-originated orders, typically by allowing them to interact more directly with liquidity that is not dominated by high-frequency or algorithmic trading strategies. In traditional and digital markets alike, such systems aim to narrow spreads and improve fill quality for non-institutional traders.

In the crypto sector, RPI-style features have gained attention as exchanges seek ways to balance fast, automated trading with the needs of human traders placing discretionary orders. Market structure has become a central issue as trading volumes concentrate among a handful of large venues and execution quality becomes a key differentiator.

What changed in the upgrade

Phemex said the latest RPI upgrade modifies how retail maker orders are routed and matched within its order books. Under the updated system, eligible retail orders are given access to a dedicated interaction framework that prioritizes retail liquidity and limits exposure to certain forms of automated trading activity.

The exchange stated that this structure is designed to encourage more retail traders to place maker orders by improving the likelihood of favorable execution, particularly in volatile or thinner markets. By incentivizing retail liquidity provision, Phemex aims to deepen order books closer to the mid-price.

Internally compiled data shared by the exchange indicates increased depth within narrow price ranges on several major trading pairs following the upgrade. These measurements compare liquidity near the mid-price before and after the changes were implemented, though no independent third-party verification has been released.

Broader market context

Liquidity has remained a central concern for crypto markets throughout the past year, particularly during periods of macro-driven volatility and uneven trading activity across venues. For centralized exchanges, deeper and more resilient order books can help reduce price impact and improve confidence among active traders.

At the same time, exchanges face growing pressure from professional traders and institutional clients to provide clearer evidence of execution quality. Metrics such as effective spreads, depth at top-of-book levels, and consistency during fast markets are increasingly scrutinized alongside headline volume figures.

RPI-style systems represent one approach to addressing these concerns, though their effectiveness depends heavily on implementation details and sustained participation from retail users.

Market impact and reception

There has been no immediate, observable market-wide impact tied directly to the Phemex upgrade, and broader crypto price movements remain driven by macroeconomic factors and asset-specific developments. Any longer-term effects on trading volumes or market share will likely emerge gradually as traders assess execution outcomes over time.

Industry participants typically treat exchange-reported liquidity improvements with caution unless corroborated by independent data providers. As a result, the significance of the upgrade for competitive positioning may depend on whether external analytics firms reflect similar changes in publicly tracked order book metrics.

What to watch next

Phemex has not indicated whether it plans to publish third-party audits or additional transparency reports related to the RPI upgrade. Market participants will be watching for changes in reported depth, spreads, and fill rates across the affected pairs in the coming months.

More broadly, the rollout underscores an ongoing shift among centralized exchanges toward market-structure experimentation as they seek to attract and retain retail order flow in an increasingly crowded landscape.