Liquidity Intact

Definition ∞ Liquidity intact means that an asset or market retains its ability to be easily bought or sold without significant price impact. In digital asset markets, this signifies that sufficient trading volume and order book depth exist to facilitate large transactions without causing substantial price volatility. Maintaining liquidity is crucial for market stability, efficient price discovery, and the smooth functioning of decentralized finance protocols. It indicates a healthy market environment where assets can be readily converted to cash or other assets.
Context ∞ News often reports on whether liquidity remains intact during periods of market stress or significant trading activity. Concerns about liquidity can arise during market downturns or when specific assets face delisting. Maintaining strong liquidity is a key objective for exchanges and decentralized protocols to ensure reliable trading conditions.