Liberal democracy, according to a popular criticism, cannot create a common identity from sources of itself, is only a means to the end of fulfilling individual identity and autonomy needs. So, what holds the society of a liberal democracy together? A necessary common, explicitly political identity seems inevitably fragile under these conditions. Thus, the central question, then, is whether this paradox generates dysfunctionalities that endanger current liberal democratic orders and, if so, how to ground a functional model of democratic political identity. To this end, the paper shows, first, that the current identity crisis is related with the concepts of modernity and liberalism. Second, in the central theoretical section, the cause of this must be explored, namely the paradox of identity politics in liberal democracies. In connection with this, third, an anomic state is discussed as a possible consequence, which can manifest itself on several levels through loss of identity and trust, radicalization, or withdrawal, thereby manifesting dysfunctionalities. In the concluding part, it will be argued for an imaginable solution handling this tension between democratic universalism and relational demarcation that can ultimately point towards the possibility of a common democratic identity and thus the avoidance of anomie.