The Impact of Liquidity on Cryptocurrency

Liquidity is the invisible force that decides who wins and who loses in crypto 💧

Most people chase coins, prices, and hype. But the real game is hidden in the liquidity pool. In 2021, over 70% of rug pulls happened in projects with less than 100k liquidity . That means the risk wasn’t the idea or the chart — it was the lack of exit doors.

Liquidity doesn’t just protect you from scams. It shapes price impact — the difference between paper profits and real profits. If you can’t exit clean, you didn’t actually make money. A strong pool keeps trades stable, while a weak one can destroy your gains in seconds.

Here’s the part most traders miss: liquidity is like the credibility bank of crypto. It’s what separates a token that can survive millions in volume from one that collapses under a single big trade. Find the balance where liquidity is deep enough for trust but light enough for growth — and you’ll see why seasoned traders obsess over it.

Price lies. Liquidity doesn’t.