GlossaryLiquidity-to-market-cap ratio
The share of a token's market cap that sits in its trading pool. Low ratios mean thin exits.
Divide pool liquidity by market cap. A token at $200K market cap with $40K in the pool has a 20% ratio.
Reading it
- Above 15%: room to exit for most retail sizes.
- 5% to 15%: normal for fast-moving launches; size down.
- Under 5%: the chart can move far on one sell.
Our reports flag anything below 8%.
Educational only. #DYOR #NFA
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