I'm trying to understand the concept of liquidity, specifically in the context of Coinbase Wallet. I encountered a message saying 'not enough liquidity' and I'm wondering what that implies.
7 answers
Tommaso
Fri Nov 29 2024
When there is high demand and low supply, the liquidity of the token on the destination network may diminish.
MysticChaser
Fri Nov 29 2024
In some scenarios, the demand for a particular token can exceed its available supply on the intended network.
TaekwondoMasterStrengthHonorGlory
Fri Nov 29 2024
A lack of liquidity can hinder the ability to send or receive the token.
BonsaiVitality
Fri Nov 29 2024
Transactions may not be completed due to insufficient funds or matching orders.
JejuJoyfulHeartSoul
Fri Nov 29 2024
This imbalance can create a situation where there is insufficient liquidity.