There are multiple reasons behind the recent significant decline in market liquidity:

1⃣️Enterprises face financing difficulties and find it difficult to obtain sufficient financial support;

2⃣️The rise in transaction costs inhibits investors’ willingness to trade;

3⃣️The withdrawal of foreign capital causes capital outflow;

4⃣️Fluctuations in the macroeconomic environment, such as rising interest rates and slowing economic growth, have also had a negative impact on liquidity.

In the blockchain field, the dispersion of funds further dilutes the hot money in the secondary market. With the improvement and standardization of market rules, the crazy gains of the last bull market no longer exist. The bull-bear transition of this round of the market may clean out some investors who failed to adapt to the new environment.