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

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)