Analysis: About 86% of concentrated liquidity in DEX is not effectively utilized, with Uniswap v3 having the highest proportion of long-term idle funds

According to The Block, a study commissioned by 1inch and conducted by Dune found that approximately 85% of concentrated liquidity in decentralized exchanges such as Uniswap v3, Uniswap v4, PancakeSwap v3, and Aerodrome Slipstream is not being effectively utilized. The research analyzed the performance of nearly 200 active liquidity pools across 7 chains in 26 weekly snapshots, tracking an average liquidity of about $1.84 billion per week, of which approximately $1.6 billion is in an inefficient state.

Specifically, on the Uniswap v3 platform, among the liquidity that has deviated from the market-making price range, 44.5% has not been adjusted for more than 90 days, making it the platform with the highest proportion in this study; in contrast, Aerodrome has a ratio of about 20%, with 58% of idle funds having been adjusted within the last 30 days.

Additionally, only about 35% of idle funds are located within 5% of the market price, approximately 43% deviate from the market price by more than 25%, and another 17% deviate by more than 100%. In terms of fund size, positions exceeding $1 million hold about 47% of the idle funds, amounting to approximately $260 million.