Hyper Liquid

A hyper-liquid sector is a marketplace where the barriers to entry are so low anyone can enter. When this occurs there is no inherent cost of operation apart from customer acquisition.

A prime example of this are internet based services powered by the open source community offering third party middleman digital services such as dropshipping. When barriers are so low, there is an inevitable flood of competitors into the market, increasing competition and therefore efficiency of all players. Once peak efficiency is reached the only place then to differentiate is price, leading ultimately to a collapse of margin.