Digital asset markets require distinguishing liquidity—ease of trading without price impact—from genuine demand. Key metrics like order flow, bid-ask spread, open interest, and stablecoin supply reveal market sentiment, risk, and price dynamics. Understanding these aids in effective trading and risk management.

The framework assesses digital asset market fragility beyond price by analyzing liquidity, leverage, stablecoin flows, on-chain risks, and sentiment to enhance risk management and detect vulnerabilities early.