Crypto's Hidden Liquidity Risks Exposed by $2.49 trillion Market

- Arthur Azizov identified significant liquidity issues in the cryptocurrency market. - Azizov proposed integrating cross-chain bridging and routing to address "phantom liquidity." On June 15, 2025, Cointelegraph reported that Arthur Azizov, Founder and Investor at B2 Ventures, highlighted significant liquidity issues within the cryptocurrency market in an opinion piece for the outlet. He reportedly drew parallels with traditional finance’s hidden risks and argued that despite the crypto market's rapid growth, its liquidity remains fragmented and fragile, an issue which poses a substantial risk during periods of market volatility. According to the Cointelegraph report on his piece, Azizov's analysis draws parallels between the crypto market and traditional finance markets, such as FX and bonds. He explained that cryptocurrencies suffer from an 'illusion of liquidity,' where order books may appear robust during calm conditions but can swiftly deteriorate during market stress. This similarity to traditional finance, he noted, reveals hidden risks that can threaten market stability. Furthermore, Azizov, as reported by Cointelegraph, underscored that opportunistic actors exacerbate the problem. These actors, including some market makers and token projects, contribute to a superficial sense of market depth through practices like spoofing and wash trading without providing genuine liquidity. Consequently, during times of volatility, these entities often withdraw from the market, thereby leaving retail traders exposed to significant price drops. To counteract this 'phantom liquidity' and reduce market fragmentation, Cointelegraph reported that Azizov suggested integrating cross-chain bridging and routing functions directly into the core infrastructure of blockchains. He believes that treating asset movement as a fundamental design principle could help unify liquidity pools across different networks, potentially resulting in a more resilient and stable market with smoother capital flow. Separately, according to CoinMarketCap on June 15, 12:00 UTC, Ethereum (ETH) was trading at $3,214, and its 24-hour trading volume had increased by 2.3%.