BTCC / BTCC Square / Global Cryptocurrency /
The Role of Liquidity in Building More Predictable DeFi Markets

The Role of Liquidity in Building More Predictable DeFi Markets

Published:
2025-05-21 13:50:02
6
3

According to the efficient market hypothesis, asset prices reflect all available information, making consistent market outperformance a challenge. Eugene Fama’s Nobel Prize-winning work underscores this principle. DeFi markets, being younger and more volatile than their CeFi counterparts, face even greater unpredictability due to fewer stabilizing mechanisms.

Efforts to enhance DeFi market efficiency could yield more predictable outcomes. Liquidity improvements may serve as a cornerstone for this evolution, aligning decentralized finance closer to traditional market dynamics.

|Square

Get the BTCC app to start your crypto journey

Get started today Scan to join our 100M+ users