Definition ∞ Secondary liquidity in financial markets refers to the ease with which an asset can be converted into cash or another asset after its initial issuance. In the digital asset space, it describes the capacity for cryptocurrencies or tokenized assets to be readily bought or sold on exchanges following their primary offering. High secondary liquidity indicates an active and efficient market for existing assets.
Context ∞ Enhancing secondary liquidity for digital assets, particularly for less common tokens or tokenized real-world assets, remains a focus for market development. Regulatory clarity and institutional participation are considered vital for improving market depth and reducing price volatility. Greater liquidity is essential for market efficiency and price discovery.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
