TRACKING SENTIMENT VIA LIQUIDITY POOLS

Summary from the TLDR Crypto newsletter

This article examines the recent volatility in crypto, using activity in liquidity pools to get a better understanding of what’s happening in the space. Liquidity has been drying up as the market has remained risk-off. This has been exacerbated before each major negative event the space has seen as large amounts of capital flowed out of liquidity pools before those events. The article goes on to interpret sentiment of the space based on these movements in liquidity.