It obvious that higher trading volum = more liquidity. liquidity refers to the ability of a coin to be converted into cash or other coins easily. Liquidity is important for any tradeable assets including cryptocurrencies.
Unfortunately, I have obversed that most coins listed this days on certain exchanges are without volume, that is, illiquid.
It is very clear that this situation was not common found before 2019.
What could be the reasons for this abnormalities. Your thoughts.
I think more than 30% of the coins or tokens that are on coinmarketcap are illiquid and are usually in small exchangers. Perhaps the factor is the inactivity of the project or there is no interest from new investors to invest
One factor that we can also consider is the exchange is not properly marketed or they have a reputation issues, I have seen so many exchanges in the scam sections and when they are reported investors and traders are shying away or stopped trading in these exchanges so traders should be careful in dealing with these exchanges.