@janice535
Secondary market liquidity is essential for token sustainability, as it enables participants to buy, sell, or trade without excessive slippage. Tokens supported by deep order books or multiple exchange listings encourage both retail and institutional engagement. Adequate liquidity reduces volatility, stabilizes price discovery, and enhances user confidence, which is crucial for ecosystem growth. Projects often incentivize liquidity provision through rewards, staking programs, or liquidity mining, ensuring sufficient token flow. Without robust secondary market support, even highly innovative tokens may struggle with adoption, as users face difficulties entering or exiting positions. Therefore, liquidity management strategies—both on centralized and decentralized platforms—play a critical role in maintaining token value and fostering a vibrant trading ecosystem.
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