Crypto investors prioritize infrastructure over DeFi, survey finds

💡 DMK Insight

Liquidity constraints are a major hurdle for institutional crypto adoption, and here’s why that matters: With senior decision-makers highlighting market depth issues, traders need to be aware that these barriers could lead to increased volatility and wider spreads, especially during high-impact news events. If institutions struggle to enter or exit positions efficiently, it could deter them from making significant investments, stalling the broader market’s growth. This is particularly relevant as we approach key regulatory decisions and potential ETF approvals, which could either alleviate or exacerbate these liquidity concerns. Look for signs of institutional interest in related assets like Bitcoin and Ethereum, as their movements could indicate broader market sentiment. If liquidity improves, we might see a rally; if it worsens, expect choppy trading conditions. Keep an eye on trading volumes and market depth metrics in the coming weeks to gauge how these barriers are evolving and their potential impact on your trading strategies.