How much liquidity is needed?

I'm curious, how much liquidity is truly necessary in the world of cryptocurrency and finance? It's a crucial aspect that often gets overlooked, but it's essential for ensuring smooth transactions and maintaining market stability. With the ever-evolving landscape of digital assets, I'm eager to understand the intricacies of liquidity and its impact on market dynamics. Could you elaborate on the ideal level of liquidity required, and how it can be achieved in this rapidly growing industry?