CoinDesk·4 min read·hard

Here is why a massive $1.6 billion in crypto liquidity is sitting idle and wasting away

F
Francisco Rodrigues
Here is why a massive $1.6 billion in crypto liquidity is sitting idle and wasting away
AI Summary

Research by Dune Analytics reveals that $1.6 billion in liquidity across major decentralized exchanges remains idle because it is priced outside of active trading ranges. This inefficiency results in lost trading fees and suggests that capital management in DeFi needs to evolve as markets grow.

The figure represents 85% of the $1.84 billion tracked across concentrated liquidity pools on Uniswap, PancakeSwap and Aerodrome, according to research by analytics firm Dune commissioned by decentralized exchange aggregator 1inch.

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