High liquidity in the cryptocurrency market generally contributes to greater price stability. It allows for large - scale transactions without significantly affecting prices. When there is ample liquidity, buy and sell orders can be easily filled, reducing the impact of market manipulation. In contrast, low liquidity can lead to sharp price movements as even small trades can cause significant price fluctuations, making the market more volatile and less stable.

High liquidity is key for stable prices in crypto! 📈💰