Tracking liquidity levels in DeFi protocols can highlight market stability. Low liquidity often causes sharper price swings, while high liquidity can smoothen price action and provide more trading opportunities.
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OTC trades bypass exchanges, which can reduce market liquidity by keeping large trades off public order books. This can lead to sudden price movements or volatility once the trades hit the market, affecting supply and demand balance.
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Partnerships can accelerate the growth and credibility of a cryptocurrency project. To evaluate this potential, start by reviewing the project's existing partnerships—do they collaborate with established industry players, like exchanges, financial institutions, or technology companies? A strong network of partners can provide access to resources, new markets, and user bases. Look for any strategic alliances that might help the project gain traction. Also, consider the team's networking and business development efforts—are they active in attending industry events, engaging with influencers, or pursuing opportunities for collaboration? Projects that build meaningful, symbiotic partnerships often have a greater chance of long-term success.
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