I would definitely say "no" on this assumption, if this assumption was indeed correct, thus high liquidity leads to high volatility then Bitcoin and Ethereum would be some of the most volatile crypto assets in existence.

Some months ago I've written an article on how to correctly apply the use of correlations into crypto trading and hedging strategies:

https://open.substack.com/pub/nils89/p/the-importance-of-correlations-in?r=2qzuk0&utm_campaign=post&utm_medium=web

I've recently analyzed and rated Ripple (XRP) with a point of view from finance. This publication is part of a re-occuring series in which I rate and analyze different crypto coins or tokens.

Ripple (XRP) Analysis & Rating:

https://open.substack.com/pub/nils89/p/crypto-coin-analysis-and-rating-ripple?r=2qzuk0&utm_campaign=post&utm_medium=web

Recently I've analyzed and rated Pirate Chain (ARRR) with a point of view from finance. This publication is part of a re-occuring series in which I rate and analyze different crypto coins or tokens.

Pirate Chain (ARRR) Rating & Analysis:

https://open.substack.com/pub/nils89/p/crypto-coin-analysis-and-rating-pirate?r=2qzuk0&utm_campaign=post&utm_medium=web