In the context of cryptocurrencies, liquidity refers to the ease and speed with which a particular asset can be bought or sold in the market, without significantly affecting its price.

A highly liquid asset has a large number of buyers and sellers and can be traded quickly and easily, while an illiquid asset may have difficulty finding buyers and can take longer to sell, often at a lower price.

How People Measure Liquidity

People in general measure liquidity using a variety of metrics and methods, including:

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yield farming

deep dive: "extensive payout rail network"

Ripple's Crypto Liquidity Hub: "With Liquidity Hub and Rippleā€™s suite of products, businesses can access optimized crypto liquidity and an extensive payout rail network to power crypto payments, crypto treasury operations, and a variety of other solutions."