#ActiveUserImpact The impact of active users on the cryptocurrency market is multifaceted and significant.

Here's a breakdown of key influences: 👇

🫴 Liquidity and Volatility:

- Increased Liquidity:

• A higher number of active users generally leads to increased trading volume. This, in turn, boosts liquidity, making it easier to buy and sell cryptocurrencies without significantly affecting their prices.

• Greater liquidity also tends to narrow bid-ask spreads, reducing transaction costs.

- Volatility:

• Conversely, periods of low user activity can result in reduced liquidity, making the market more susceptible to price swings and increased volatility.

• Sudden surges in user activity, particularly during bull markets, can also strain infrastructure and contribute to volatility.