2025-12-17 05:20:37

This round of global decline essentially reflects a rapid contraction of liquidity. U.S. stocks led the decline, followed by A-shares and Hong Kong stocks, and even flagship assets like BTC are struggling to stay afloat—this is enough to demonstrate that funds are retreating on a large scale.

December has always been the month for year-end settlements. Institutions need to finalize their annual accounts, retail investors are preparing for the New Year, and coupled with tense geopolitical situations and the Fed's hawkish tone intensifying, rising capital costs are almost a given. More alarmingly, the current decline pattern resembles that of early 2022: tech stocks collapse first, and risks then spread globally. If U.S. Treasury yields continue to rise, liquidity pressure will further worsen.

Some DeFi projects claim to be "institution-grade" and "de-risked," but what is the reality? Trading volume has hit rock bottom, prices continue to decline, and institutional funds are actually flowing into assets with ample liquidity, not these deeply illiquid projects. When market making can no longer be sustained, what stories of innovation are still being told?

In the current market environment, the logic of funds is simple: cling to assets with strong liquidity. Projects that cannot even maintain basic trading volume cannot find even the most fundamental counterparties, let alone participate in building the DeFi ecosystem. This is not an excuse for macro uncertainty; it is a true reflection of the project's own competitiveness.

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LowCapGemHunter

· 2025-12-19 13:24

Liquidity contraction is so brutal, garbage projects are the first to be affected It's that time again for the leek-cutting season, those broken DeFi projects are still telling stories The déjà vu of 2022 is quite strong; can it last until the Spring Festival this time? Trading volume has bottomed out yet still claims "institutional level," anyone would feel uneasy Basically, it's the process of bad money being淘汰, don't blame the market or yourself Liquidity is the ultimate test of a project's true quality; if it can't withstand, just roll out If BTC can't hold its ground, those small coins are even more cannon fodder Market makers have already fled, what ecosystem construction are we talking about? Laughable Major funds have long withdrawn, retail investors are still catching the bag, too tragic Only projects that survive this wave are worth watching

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DancingCandles

· 2025-12-19 08:59

Liquidity contraction, no one can escape it. Even BTC can't hold up, indicating that institutions are really clearing out their positions. Those so-called "institutional-grade" DeFi projects crack me up. They have the lowest trading volume but still keep talking big stories. Shallow projects are doomed in this environment. Who's to blame? How many times did I miss out on the 2022 wave... This time, it feels like the same old套路

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quiet_lurker

· 2025-12-17 07:08

Liquidity contraction is really intense this time, even BTC can't be protected, indicating that funds are really fleeing. At the end of December, the settlement combined with the Fed's hawkish stance—who can withstand this combo? Those DeFi projects still boast about being institutional-grade, but with trading volume dead, who still dares to tell stories? Everyone is watching for the bottom, but projects without enough depth are simply not being picked up. Last year around this time, tech stocks also led the decline; history really does repeat itself.

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¯\_(ツ)_/¯

· 2025-12-17 05:50

Liquidity contraction is really hard to face. If BTC can't handle it, what does that say about retail funds already fleeing? Those DeFi projects are still hyping up institutional-grade stuff, but with no trading volume left, what's the point of even trying? Just forget it. The pattern of decline at the end of the year feels familiar, like the rhythm at the beginning of 2022. I really can't hold on. Institutional funds only care about liquidity. Projects with poor depth are just a joke; they can't even maintain market making. Honestly, now you should only hold assets with strong liquidity. Everything else is just a supporting act. If US Treasury yields rise again, the pressure will be so intense that the sky will fall. No one can escape. It looks like the year-end liquidation month is just too tough. Funding costs are definitely going up, no negotiations. Those projects that were just hype now are the first to be abandoned, not because of macro factors, but because they just can't make it. Liquidity can disappear just like that. When it does, everything becomes pointless.

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ClassicDumpster

· 2025-12-17 05:47

Liquidity contraction is just that, nothing new. We've said it all along. Well said. Those DeFi projects pretending to be institutional-grade, with trading volumes hitting rock bottom, what are they even bragging about? Coming back with the 2022 script, and this time the drop is even harsher. Institutional funds only care about liquidity. No matter how many trash projects you create, it's all pointless. When US Treasury yields rise, it's game over. Retail investors flee, and institutions have already exited. It's the end of the year, and this is how it is—everyone's clearing out their positions, no one wants your coins. Market makers can't hold on anymore. Still dreaming of attracting institutions? Dream on. Hold tight to mainstream coins; everything else is a trap. DeFi's trading volume is so insignificant that institutions don't even bother to look. It's really ironic. Exactly right. Without liquidity, everything is pointless. Telling stories won't get you anywhere.

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DuckFluff

· 2025-12-17 05:46

Liquidity shrinks and reveals its true nature. Projects that boast as "institutional-grade" should have gone bankrupt long ago. It's that time of year again for end-of-year clearing. What was expected has finally arrived. The shadow of 2022 hasn't faded yet. If market making can't even hold up, how dare they still tell stories? Truly astonishing. Lying flat and waiting for 2025. This year's money will be spent next year. BTC can't even stop this wave, which shows that you all understand what it means. Buy the dip if you're optimistic. It's best if trash projects are completely cooled off. Liquidity exhaustion is like a mirror that reveals the true nature. Real gold and silver show their worth. It feels like a mess—trading volume has disappeared, who would still dare to take over?

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SmartContractDiver

· 2025-12-17 05:43

Liquidity tightness causes institutions to flee—what's the point of all these fancy tricks? --- DeFi talks about innovation every day, but if it can't even boost trading volume, what's the point of bragging? --- December settlement month is correct, but this wave of decline feels even worse than the one in 2022. Need to be cautious. --- Basically, funds just can't find a place to go—they're all piling into top-tier projects. --- A déjà vu of 2022—will it replay this time? Feeling a bit anxious. --- The louder the institutional facade, the faster it dies—that's an iron law. --- Projects suffering from liquidity shortages are now toxic; even the best stories can't save them. --- Market conditions that even BTC can't withstand—retail investors are still sleepwalking. --- Geopolitical tensions plus rising US debt—this combo punch is truly deadly. --- Projects that can't even find trading partners—still dare to boast about ecosystem development? --- Lack of depth is a fatal flaw; no matter how advanced the technology, it's useless.

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AirdropChaser

· 2025-12-17 05:35

Liquidity shrinks and everything becomes paper. Those small projects claiming to be institutional-grade should really take a look in the mirror. --- Haven't learned the lesson from early 2022? This risk pattern looks too similar; be careful. --- Even at the bottom of trading volume, they still boast about innovation. Laughable. Institutions have already left. --- Funds will only flow to places with good liquidity. That's the reality, no need to hide it. --- End-of-year tight budgets, retail investors still dare to buy in? Truly brave. --- U.S. bonds keep rising, but even BTC can't stop it. What does that mean? It just means there's no money left. --- DeFi projects lacking depth refuse to optimize themselves and instead blame macro factors? That logic is truly brilliant. --- Market makers can't even hold on, yet they still want to attract institutions. Wake up, everyone. --- This is the cruel market law: survival of the fittest, with no exceptions. --- Look at those with dismal trading volumes; they should have been eliminated long ago.

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pumpamentalist

· 2025-12-17 05:23

I've long seen through the liquidity drying up. Some projects are still hyping up their institutional level, but the trading volume is even colder than ghost markets. Who would believe that?

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