Analysis: The liquidity pool depth of Mubarak is only 5% of the daily trading volume, large holders may face difficulties in selling
ChainCatcher reports, according to Aunt Ai's analysis, that the BSC ecosystem Meme coin $mubarak currently has a problem of insufficient liquidity depth, which may make it difficult for large holders to sell their positions without significantly affecting the price.
Data shows that the current market value of $mubarak is approximately 134 million US dollars, with a 24-hour trading volume reaching 88.1 million US dollars. However, the liquidity pool depth is only 4.48 million US dollars, accounting for only 5% of daily trading volume. PancakeSwap data shows that the cumulative TVL of the top two liquidity pools for this token is only 4.01 million US dollars, among which WBNB's cumulative quantity is about 3,175.8 (approximately 2 million USD).
Analysts point out that taking the number one address as an example; this address currently holds about 13 million tokens worth approximately $1.618 million USD. If they attempt to sell all at market price they will face more than half a million dollar slippage loss because current BNB liquidity pool depth cannot support such scale transactions.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
SpaceX initiates IPO process, seeks advice from Wall Street investment banks
The probability of the Federal Reserve keeping interest rates unchanged in January next year is 75.6%
"Maji" reduced its 25x leveraged ETH long position, with the current liquidation price at $3,042.74.