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 believe that if there is no liquidity, then there is no demand for the asset. At this time, it has a large number of crypto assets that no one needs. At the same time, project administrators who released such are active in every possible way trying to make money on their cryptocurrencies by selling them at any price. This is also influenced by the oversaturation of crypto assets in the market. In other words, until the crypto market dumps unnecessary assets, we will observe this picture. However, there is one more point. Now investments are made only in top altcoins and new promising tokens, all the other ones are active and do not arouse interest. The situation in the world also affects this situation. Some investors do not invest at all as they are simply afraid to do so.