How Do AMMs Facilitate the Trading of Long-Tail or Less-Popular Cryptocurrency Assets?
AMMs facilitate the trading of long-tail assets by removing the requirement for a counterparty. In a traditional order book, less-popular assets often suffer from poor liquidity, making it hard to find a buyer or seller.
An AMM guarantees a price based on its formula and the pool's reserves, allowing instant trading regardless of demand. This accessibility dramatically lowers the barrier to entry for new or niche tokens.