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What is Liquidity?
Crypto Glossary Definition
The availability of an asset to be bought and sold easily, without affecting its market price.
Why Liquidity Matters
Liquidity describes how easily an asset can be bought or sold without moving its price much. A coin with thin liquidity can swing wildly on a single large order, and on DEXs, "providing liquidity" to a pool is itself how many DeFi yield strategies work.
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