You must understand this knowledge, which is crucial in future investments:

Many traders believe that high-market-cap altcoins cannot grow much, such as high-market-cap projects like Solana, which would need to spend N billion dollars to increase their prices N times. This idea is wrong for the following reasons

Market capitalization is a key metric used to estimate the total value of a cryptocurrency. It is calculated by multiplying the current price of an asset by its total supply. Many traders believe that for a token's price to double, an investment equal to its current market value is required.

For example: If X has a price of $1 and 1 billion tokens, its market capitalization is $1 billion. One might think that doubling its price to $2 would require an additional investment of $1 billion. However, this ignores liquidity. Liquidity refers to how easy it is to trade a token without affecting its price.

High liquidity allows large transactions with little price change. Low liquidity means that even small transactions can result in large price fluctuations. For tokens traded on exchanges, liquidity is crucial. You can only sell as many tokens as the available liquidity allows.

MEME Coin project owners took advantage of this and listed the token on decentralized exchanges with small liquidity pools, making it easier to manipulate prices and create FOMO among investors. It doesn't always take billions of dollars to increase the market value or price of a token.

Based on basic economic principles, limited liquidity combined with high demand can significantly drive prices up. As an investor, it is critical to understand these dynamics when researching and trading cryptocurrencies.