Opinion: The Crypto Assets market faces liquidity risks similar to those in TradFi.

robot
Abstract generation in progress

Odaily News B2 Ventures founder Arthur Azizov pointed out that although the total market capitalization of the crypto assets market has reached $2.49 trillion (expected to reach $5.73 trillion by 2033), there are serious hidden dangers in its liquidity structure. The order books of centralized exchanges shrink rapidly during market fluctuations, especially for tokens outside the top 20 by market capitalization, where liquidity is dispersed across different exchanges and lacks a unified pricing mechanism. During the market crash in 2022, mainstream tokens experienced significant slippage on top exchanges. The recent flash crash incident of Mantra's OM token once again proves that market depth can instantly disappear under pressure. Experts believe that solutions need to start from the protocol layer, improving the fragmented situation through native cross-chain bridging and unified liquidity routing technology (which some L1s have already adopted). Currently, 70%-90% of stablecoin trading volume has been completed by automated trading, and technical bottlenecks are gradually being eliminated. (Cointelegraph)

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)