Definition ∞ A high liquidity standard signifies that an asset or market permits large transactions without substantial price impact. This standard indicates the ease with which an asset can be converted into cash or another asset at its fair market value. It implies deep order books and consistent trading activity, allowing participants to enter or exit positions efficiently. Meeting this standard is crucial for minimizing slippage and supporting significant capital allocations.
Context ∞ The discussion of a high liquidity standard is central to news regarding institutional adoption of digital assets and the maturity of cryptocurrency markets. Institutions demand assets that meet stringent liquidity criteria to manage risk and execute large trades effectively. Regulatory bodies also consider liquidity when assessing the stability and safety of digital asset products, influencing market structure and investment product approvals.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
