Summary
TLDR: Crypto market microstructure has always been a challenge, with issues like fragmented liquidity and supply/demand disparities. These legacy challenges are becoming more addressable as crypto transitions from a fully retail market.
Key Points
1. Market microstructure has been a key issue in the development of many crypto instruments, stemming from the grassroots ideological experiment that crypto began as.
2. Some infrastructural challenges in the crypto market include fragmented liquidity, lack of consensus around centralized pricing mechanisms, and supply/demand disparities across different trading platforms.
3. These legacy challenges are now becoming more addressable as crypto transitions from a fully retail market to a more regulated and institutionalized space.