#Liquidity101

Crypto Earthquakes: 6 Major Liquidity Shocks That Shaped Crypto (2022–2025)💥💸

💧 Liquidity risk in crypto means the inability to quickly trade assets without causing major price swings. When it strikes, platforms fail, assets crash, and investor trust evaporates.

Between 2022 and 2025, the crypto world witnessed six major liquidity shocks:

1. Terra (LUNA) & UST Collapse (2022): UST lost its peg, wiping out $40B and sending LUNA to near-zero, sparking global regulatory scrutiny.