@etuertuydeht
Liquidity is critical for price stability. Key metrics include:
Order Book Depth: Measure bid-ask volumes within 0.1–0.5% price ranges .
LTP Liquidity Score: A weighted average of order book depth across exchanges .
Exchange Rankings: Binance, Kraken, and Coinbase dominate liquidity, with Binance excelling in tight spreads .
TVL in DeFi Pools: High TVL (e.g., Uniswap) indicates robust decentralized liquidity.
Tools like TradingView’s LiquidityFlow Dominance track stablecoin/Bitcoin dominance shifts, signaling risk-on/off sentiment .