Opinion: Cryptocurrency markets face similar liquidity risks as traditional finance

B2 Ventures founder Arthur Azizov points out that despite the total market capitalization of the cryptocurrency market reaching $2.49 trillion (expected to reach $5.73 trillion by 2033), its liquidity structure has serious hidden dangers. The order books of centralized exchanges quickly shrink during market fluctuations, especially for tokens outside the top 20 by market cap, with liquidity scattered across different exchanges and lacking a unified pricing mechanism. During the market crash in 2022, mainstream tokens experienced significant slippage even on top exchanges. The recent flash crash of Mantra's OM token further proves that market depth can instantly disappear under pressure. Experts believe that solutions need to start from the protocol layer, improving the fragmented status through native cross-chain bridging and unified liquidity routing technology (already adopted by some L1s). Currently, 70%-90% of stablecoin trading volume has been completed by automated trading, and technical bottlenecks are gradually being eliminated. (Cointelegraph)