Recently, there has been a noteworthy phenomenon in the crypto market—one leading DEX's weekly trading volume dropped to 45 billion. While this number still looks decent, looking at the historical context reveals underlying issues. This platform once had weekly trading volumes reaching the trillions, now it’s been cut in half, and the market reaction has been quite significant.

What does a sharp decline in trading volume mean? Simply put, liquidity is shrinking. When liquidity is insufficient, slippage for user trades increases, and transaction fees go up accordingly. As a result, traders who initially intended to trade start to hesitate, and reduced trading further exacerbates liquidity depletion, creating a vicious cycle—sluggish trading, user exit, and collapsing confidence.

How much impact does this chain reaction have on the ecosystem? It depends on how participants respond. Interestingly, some core users haven't chosen to leave; instead, they are thinking about how to boost the platform’s popularity. This proactive engagement mindset is quite worth pondering—why are users willing to put effort into supporting the platform’s performance? Ultimately, it’s all about vested interests. When platform activity increases and the token ecosystem stabilizes, holders’ assets can appreciate more steadily.

Competition in the DeFi space has always been fierce. When a platform faces liquidity issues, user attention can easily shift to other players. Therefore, for such platforms, the current data decline is both a warning signal and a test of responsiveness. Whether they can re-attract users in the short term through incentives and innovative products will determine their future survival. The market doesn’t give second chances just because someone once had glory; it only recognizes current performance.