Why is liquidity a key indicator on MEXC?
Some indicators such as liquidity have a direct impact on the user experience and strengthen market resilience
Trading volume is often the first indicator used to evaluate crypto platforms. Analytics, media and aggregators rely on it as a signal of activity. Yet this figure can be misleading. It can be artificially inflated through false transactions or by encouraging wash trading, buying and selling orders placed at the same size and price that cancel each other out, creating a fictitious volume with no real liquidity.
That’s why MEXC pays special attention to liquidity. A much more reliable indicator for assessing a trader’s actual experience.
Liquidity: the driver of a healthy market
Liquidity refers to the ease and speed with which an asset can be bought or sold without significantly changing its price. It indicates how easy it is for traders to execute orders as close to the market price.
At MEXC, we monitor several key components to assess the liquidity of our platform:
Spread
The difference between the highest price offered by buyers and the lowest price demanded by sellers. A lower spread means lower trading costs and reflects better valuation of the asset.
Market depth
The volume and number of orders available at different price levels. A large depth allows to absorb larger orders without disrupting the price.
Stability of the order book
Market depth is consistent over time, especially in times of high volatility. High stability ensures more predictable trading conditions.
Imbalance between buyers and sellers
An imbalance (for example, a lot more buy orders than sell) can lead to increased volatility. Balanced liquidity ensures better price stability.
Latent liquidity
The cost to execute an order at the market, influenced in particular by "taker" type fees. Competitive fees on MEXC encourage participation while ensuring effective price discovery.
Price dispersion
The difference between prices displayed on different platforms. Low dispersion allows traders to react more quickly to market movements.
Why liquidity is critical for MEXC users
Good liquidity allows orders to be executed more quickly, at a better price and with less slippage. As in a well-attended physical market, transactions are made naturally and efficiently. Conversely, low liquidity leads to delays, price differentials and higher opportunity costs.
Liquidity creates a positive dynamic: more liquidity, more confidence, more real volume, even more liquidity.
Liquidity, a more reliable indicator than volume
Volume can be manipulated. Liquidity is visible and felt by all traders. On MEXC, our priority is to build real liquidity, because it’s what directly improves the experience of our users. There is no lasting interest in artificially inflating the numbers.
The basis of a resilient market
An illiquid market can easily be manipulated by massive orders. Liquid markets - like MEXC’s - naturally absorb these shocks, protecting prices and users.
This is why liquidity is an indicator of confidence and robustness. By placing this aspect at the heart of our strategy, MEXC is committed to offering transparent, efficient and safe markets built to last.
🔗 More info :
https://www.mexc.com
https://s.mexc.com/mevent/xqSD9MbX
https://www.mexc.com/support