85% of DEX Concentrated Liquidity Remains Inefficiently Utilized

Study reveals $1.6B of concentrated liquidity is idle across major DEXs, with Uniswap v3 showing the highest rate of long-term inactivity.

Woofun AI data shows that approximately 85% of concentrated liquidity in decentralized exchanges, including Uniswap v3, Uniswap v4, PancakeSwap v3, and Aerodrome Slipstream, is not effectively utilized. Analysis of nearly 200 active pools across seven chains indicates an average weekly liquidity of $1.84 billion, with roughly $1.6 billion in an inefficient state. On Uniswap v3, 44.5% of liquidity outside the price range remains unadjusted for over 90 days, the highest proportion observed. Conversely, Aerodrome reports a 20% ratio, with 58% of idle funds adjusted within 30 days. Regarding distribution, 35% of idle funds sit within 5% of market price, while 43% deviate by more than 25% and 17% by over 100%. Positions exceeding $1 million account for 47% of idle funds, totaling approximately $260 million.