Liquidity in the crypto market is key to executing transactions without drastically affecting the price of an asset.
Recently, the market experienced an increase in Bitcoin liquidity following the announcement of institutional adoption by several fund managers in the U.S. This resulted in narrower spreads and greater ease in buying or selling large amounts without causing noticeable slippage. The Binance platform stood out in the latest Kaiko report for maintaining the highest volume in high liquidity pairs.
This benefits traders by reducing implicit costs. High liquidity is often a sign of market health.