Yes. Illiquid markets are unlikely to attract speculative traders or convince new exchanges to list your token. When buyers and sellers cannot trade at efficient prices, interaction declines and volume stagnates. Exchanges evaluate listing candidates partly on volume potential — tokens with poor liquidity and low volume may face delisting risk. On the DEX side, decentralized liquidity pools with minimal swap fees generate insufficient revenue share to attract organic liquidity providers, compounding the problem.
Lesson 6 of 90
Can poor liquidity cause low trade volumes?
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