➥ DeFi’s liquidity problem is bigger than I thought I’ve provided liquidity across enough DEXs to know the feeling of watching my position move out of range and earn zero fees I used to assume this was mainly a timing problem, but the data suggests it is structural New research by Dune and @1inch found that 85% of DeFi liquidity is underutilized at any given time, representing up to $1.6B in capital As of June 30, around $580-590M was sitting fully idle and out of range, mine was probably somewhere in there And we already know what that means, it earned no fees and provided no trading depth This was not the result of one unusually volatile week either Across 26 weekly snapshots from January 6 to June 30, 2026, an average of 29.5% of concentrated liquidity capital was out of range The mechanics are simple: - LP capital only works within its selected price range - Once the market moves outside that range, the position stops working until someone rebalances it Manual management is painful af. It is slow, costly, and easy to mistime This is a serious market-structure problem DeFi wants to bring TradFi’s trillions onchain, but it still cannot keep today’s billions fully utilized Before DeFi scales the amount of capital, it first needs to improve how efficiently existing capital is used And considering that @1inch co-authored this research, it feels like they may be doing more than just identifying the problem I wouldn't be surprised if something is already being built under the hood to make onchain liquidity more adaptive and capital-efficient