Part 5/12:
The Myth of External Liquidity and the Rise of Crypto-Native Liquidity
While conventional wisdom often attributes liquidity to external sources like central banks or commercial banks, Dan highlights the growing importance of "cryptonative" liquidity—liquidity generated within the crypto ecosystem itself. This internal liquidity primarily stems from the rapid expansion of DeFi (Decentralized Finance), where total value locked (TVL) in lending protocols and stablecoin market caps serve as proxy indicators.