How does liquidity compare between Cardano DEXs and centralized exchanges?

Liquidity on Cardano DEXs compared to centralized exchanges:

1. Generally lower but rapidly growing liquidity on Cardano DEXs.
2. Concentration of liquidity in major ADA trading pairs.
3. Higher liquidity for Cardano native tokens compared to centralized exchanges.
4. Potential for better rates on large trades due to lower fees and slippage.
5. Liquidity mining incentives often available, allowing traders to earn while providing liquidity.
6. More volatile liquidity levels, especially for newer or less established tokens.
7. Increasing institutional interest may boost DEX liquidity over time.
8. Cross-chain bridges and interoperability solutions may provide access to wider liquidity pools in the future.

Traders should monitor liquidity levels and consider their trading volume when choosing between DEXs and centralized exchanges.

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