Importance of On-Chain Liquidity
Liquidity is the most important factor in any kind of market, indicating overall health of a market. With enough liquidity, traders and investors can interact with the market without having too much slippage. When the liquidity dries out, buying and selling might not be even possible at all. In the blockchain industry we have seen how liquidity affects the overall market condition from Decentralized AMM Protocols such as Uniswap, Pancakeswap. Many good projects died and their token became worthless because they couldn’t maintain enough liquidity.
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