#Liquidity101 Certainly! Here's a short and current note on #Liquidity101 (as of June 2025):

#Liquidity101 – June 2025 Update

Liquidity refers to how easily an asset can be bought or sold without significantly affecting its price. It's a critical concept in both traditional finance and crypto trading.

🔹 High Liquidity

Assets with high trading volume and narrow bid-ask spreads.

✅ Easy to enter or exit positions

✅ Less price volatility

Examples: BTC, ETH, major stocks like AAPL

🔹 Low Liquidity

Assets with low trading volume and wide spreads.

❌ Harder to buy/sell quickly

❌ Higher risk of slippage

Examples: New or obscure altcoins, low-cap stocks

📊 Key Liquidity Metrics

Trading Volume – Higher = more liquidity

Bid-Ask Spread – Narrower = better liquidity

Order Book Depth – More orders = more stability

🧠 Why Liquidity Matters

Reduces trading costs

Enables better price execution

Vital for institutional participation

Influences market health and volatility

🆕 2025 Trends:

AI liquidity aggregators on DEXs

Tokenized RWAs (real-world assets) boosting on-chain liquidity

Layer 2 scaling increasing liquidity flow across chains

Hashtags: #Liquidity101 #CryptoBasics #MarketEducation #DeFi2025 #TradingTips #OnChainFinance