Liquidity and Volatility
Last updated
Last updated
Liquidity and volatility analysis provides a comprehensive view of the token's market stability and risk. It analyzes:
Initial LP vs. Current Pool Size: This comparison checks the initial liquidity pool (LP) amount against the current total pool size, providing insights into how much the liquidity has changed since the token's launch.
Initial + Added LP vs. Current Pool Size: This step examines both the initial liquidity and any additional liquidity added over time. It compares the total added liquidity to the current pool size, helping investors understand the overall strength of the liquidity pool and its capacity to handle volatility.
Top 10 Holders Drain Risk: This analysis evaluates the potential impact on the liquidity pool if the top 10 holders were to sell their holdings simultaneously. It estimates how much liquidity could be drained and the effect on the token’s price stability.
Top 100 Holders Drain Risk: Extending the analysis, this checks the same scenario for the top 100 holders. By simulating a mass sell-off, it provides a clearer picture of the risk of liquidity draining from the market and its potential effect on price and volatility.
Liquidity-to-Market Cap Ratio: This ratio compares the current liquidity pool to the token's market cap, offering a clear indication of the token's volatility. A higher liquidity-to-market cap ratio often suggests greater price stability, while a lower ratio can signal higher volatility.