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'Liquidity Crisis': $12B in DeFi Liquidity Sits Idle as 95% of Capital Goes Unused
Market Intelligence Analysis
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Why This Matters
A recent report highlights a significant liquidity crisis in the DeFi sector, with $12 billion in liquidity remaining idle and 95% of capital going unused. This situation is particularly detrimental to retail liquidity providers, with half of them experiencing losses due to impermanent loss, leading to net deficits exceeding $60 million.
Market Impact
Market impact analysis based on bearish sentiment with 86% confidence.
Sentiment
Bearish
AI Confidence
86%
Article Context
Note: This is a brief excerpt for context. Click below to read the full article on the original source.
This inefficiency disproportionately affects retail liquidity providers, with 50% losing money due to impermanent loss, and net deficits exceeding $60 million, a new report finds.
Original article published by
Unknown
on November 22, 2025.
Analysis and insights provided by AnalystMarkets AI.
Analysis and insights provided by AnalystMarkets AI.