Market makers now adjust spreads dynamically and manage inventory with tighter hedging. In volatile conditions, they may widen spreads or reduce quotes, influencing execution quality and perceived market depth.
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Current price discovery is distorted by speculation and hype. To improve efficiency, clearer disclosures, transparent tokenomics, and robust on-chain data tools are necessary.
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Increased liquidity during bullish markets strengthens price stability but also invites speculative activity. Monitoring liquidity dynamics is crucial for understanding potential corrections.
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