[DigitalToday reporter Yoonseo Lee (이윤서)] Liquidity has emerged as a key variable for investment decisions, as it varies widely by asset even as the crypto market has grown and can dry up quickly when markets are hit by shocks.

A blockchain outlet, The Crypto Basic, reported on June 3 (local time) that daily spot trading volume at major exchanges in 2026 exceeded $100 billion and total stablecoin supply rose to $320 billion, but actual trading conditions were uneven across the broader market.

Even with the same amount of money, execution prices and price impact can differ sharply depending on which asset it flows into. In markets with heavy trading and tight bid and ask quotes, trades go through close to quoted prices. In shallow markets, even small orders can trigger sharp price moves, it explained.

The crypto market expanded in appearance in 2026. Of total 24-hour market trading volume of $331 billion, futures accounted for $299 billion, or about 90%. The share of institutional investors also exceeded 65% of total trading volume.

Even so, a larger market does not mean lower liquidity risk. In particular, institutional money is hard to execute immediately with large market orders, increasing reliance on over-the-counter (OTC) markets. Average daily OTC volume was estimated at $50 billion to $60 billion.

Stablecoins have also become a key pillar of liquidity. As of June 2026, total stablecoin market capitalisation exceeded $320 billion, with Tether at $187 billion, accounting for 58.4%. USD Coin (USDC) followed with $75.9 billion.

About 75% of total crypto trading volume in the first quarter of 2026 was based on stablecoins, also showing how money flows through the market. An increase in stablecoin inflows can be seen as a signal of new money coming in, while falling balances can be interpreted as a sign that investors have turned defensive.

Spot bitcoin exchange-traded funds (ETFs) were also cited as a factor that changed the liquidity structure. As of early June, BlackRock's IBIT had net assets of about $52 billion. The spot bitcoin ETF market saw $2.43 billion of outflows in May 2026, but posted combined net inflows of $3.29 billion in March and April. ETFs opened a regulated bitcoin investment route for institutional investors, but large-scale redemptions can put selling pressure even on deep markets.

Liquidity broke down quickly during periods of market stress. One example cited was the so-called "crypto Black Friday" on Oct. 10, 2025. After U.S. President Donald Trump announced 100% tariffs on imports from China, selling spread across global risk assets, and the crypto market saw the largest single-day deleveraging on record.

Total crypto market capitalisation fell by $350 billion to $560 billion in a single day, and open interest in perpetual futures dropped 43% to $123 billion from $217 billion. Hyperliquid saw open interest plunge 57% within hours.

In addition, the synthetic stablecoin USDe traded on Binance broke its peg to around $0.65, triggering further liquidations. Liquidity conditions then fell to the weakest level since 2022, and market makers also faced strong selling pressure. Such liquidity crises typically occur when buyers, sellers and tradable assets disappear faster than the market can adapt.

Even bitcoin reacted sensitively to a decline in supply. As of early 2026, only about 13% of bitcoin in circulation was actively tradable in public markets. Long-term holders accumulated an additional 212,000 BTC in February alone. In markets with limited liquidity, even small changes in supply can lead to large price moves.

Altcoins were more vulnerable. Some low-market-cap cryptocurrencies can see prices move 5 to 10 percent with market buy orders of just $100,000.

The indicators investors should check are not limited to trading volume. Suggested metrics included spreads between bid and ask quotes, order book depth showing thickness of orders near the current price, stablecoin inflows and outflows, ETF fund flows, and changes in the share of trading between centralised exchanges (CEX) and decentralised exchanges (DEX). In highly liquid pairs such as Binance's BTC/USDT, spreads remain at just a few cents, but thinly traded altcoins can widen by 1 to 3 percent or more.

Differences by trading structure are also clear. Centralised exchanges handle large orders more efficiently through traditional order books, but carry custody and counterparty risks. By contrast, decentralised exchanges operate through liquidity pools and automated market makers, allowing direct trading from wallets, but price impact can be larger for big orders.

In the 2026 crypto market, liquidity is shifting from trading volume to the issue of actual execution and price impact. Even if the market has grown, resilience can change quickly depending on order depth and money flows when shocks hit, and investors should look not only at volume but also at spreads, order books, and stablecoin and ETF fund flows, the report said.