Non-Fragmented Liquidity

Definition ∞ Non-fragmented liquidity describes a market state where the total trading volume for a specific asset is concentrated in a single or a limited number of easily accessible venues. This concentration, rather than dispersion across many platforms, generally results in tighter bid-ask spreads and improved price execution for trades. It signifies market depth and efficiency.
Context ∞ In digital asset markets, news often highlights the challenges posed by fragmented liquidity across numerous exchanges and decentralized protocols. Discussions frequently center on aggregation solutions and cross-chain initiatives aimed at consolidating liquidity to enhance market efficiency and reduce slippage for traders. Achieving this state is a goal for many market participants.