Definition
Impermanent loss is the temporary value reduction liquidity providers see when deposited token prices diverge. Learn how it works and how to mitigate it.
Why It Matters
Understanding Impermanent Loss helps you read crypto market data more accurately and make better-informed decisions when comparing coins, projects, and on-chain activity.
Where You'll See It
Impermanent Loss appears throughout cryptocurrency analytics on Crypto Market Watch — including coin profiles, rankings, and other glossary entries. Continue with related glossary terms or read the longer-form learn articles for deeper context.