Skip to content

Liquidity

Liquidity describes how easily an asset can be bought or sold without causing a significant change in its price. A highly liquid market usually has plenty of buyers and sellers, while an illiquid market may have limited trading activity and larger differences between buying and selling prices.

Why it matters to you

Tokenization can make an asset easier to divide and transfer, but it does not automatically make that asset liquid. A tokenized asset still needs genuine market demand, buyers, sellers and trading infrastructure. Tradable and liquid are not the same thing.

Learn real world assets properly

Our RWA course. Chapter 1 is free.