NFT liquidity refers to how easily non-fungible tokens can be bought or sold in the market without causing a significant change in their price. High liquidity implies that there are many buyers and sellers, allowing for quick transactions at stable prices.In contrast, low liquidity occurs when there are fewer interested parties, making it harder to sell an NFT or leading to larger price fluctuations. Factors influencing NFT liquidity include the popularity of the asset, the strength of its community, and the overall demand for NFTs.Marketplaces play a crucial role in determining liquidity. Established platforms with a large user base often have higher liquidity compared to niche or new marketplaces. Furthermore, NFTs that are part of well-known collections, like CryptoPunks or Bored Ape Yacht Club, tend to have better liquidity due to their recognizable brand and strong demand.Understanding NFT liquidity helps investors gauge the ease of entering or exiting positions, influencing their buying and selling decisions.