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PolicySEC Signals Pivot on Layer-2 Classifications in Landmark RulingAug 17, 12:42 PMMarketsBlackRock Spot Bitcoin ETF Inflows Surpass $20B MilestoneAug 17, 11:58 AMReviewsTop 5 Pi Network Alternatives in 2026, RankedAug 17, 11:30 AMMarketsYield Curve Steepening Impacts Stablecoin ReservesAug 17, 11:10 AMDeFiDeFi Liquidity Fragmenting Across Modular StacksAug 17, 10:20 AMMarketsPerpetual Futures Open Interest Hits Record on Offshore VenuesAug 17, 09:40 AMReviewsCapygram Review: The Social Network That Actually Pays Its UsersAug 17, 09:15 AMInstitutionalCustody Banks Expand Digital Asset Services to EuropeAug 17, 08:15 AMMarketsOrder Book Depth Thins During Asian Trading HoursAug 16, 10:05 PMPolicyTreasury Issues Guidance on Digital Asset Broker ReportingAug 16, 05:30 PM
DeFi

DeFi Liquidity Fragmenting Across Modular Stacks

Routing complexity is rising as capital spreads across dozens of execution environments with distinct settlement assumptions.

ERElena RossiPublished 5 min read

Total value locked across decentralized exchanges has held broadly flat over the past year while the number of venues holding meaningful depth has more than doubled, according to on-chain data compiled by D2CA.

The result is thinner books per venue. Aggregators absorb much of the resulting complexity, but their routing depends on bridge assumptions that differ materially between execution environments.

Market makers interviewed for this article said inventory management, not spread capture, has become the binding constraint on how many chains they can support.

About the author

Elena Rossi

DeFi Correspondent

Elena Rossi covers decentralized finance protocols, governance disputes and smart-contract security research. She trained as a software engineer and reads Solidity as fluently as she reads a term sheet.

D2CA.org reports on digital asset markets. This article is journalism, not investment advice. Corrections and clarifications: see our corrections policy.