Idle Crypto Liquidity Worth $1.6 Billion Goes Unused

A study by Dune, commissioned by decentralized exchange aggregator 1inch, found that $1.6 billion in liquidity deposited across major decentralized exchanges was not being used to its full potential during the first half of 2023.

The figure represents 85% of the $1.84 billion tracked across concentrated liquidity pools on Uniswap, PancakeSwap and Aerodrome. Roughly $542 million, or 29.5%, sat fully out of range in an average week, priced too high for traders to use.

The study linked idle liquidity more closely to price movements than to volatility. A steady price move in one direction is more likely to strand capital than a volatile week that ended near where it began.