In the current cryptocurrency cycle, Memes is undoubtedly one of the focal points. Although Memes’ dominance in the major altcoin markets has declined recently, this does not mean that the game of Memes is over. From multiple perspectives, the Memes market still has its unique vitality and potential. Despite the decline in dominance, it is worth noting that the liquidity of Memes is currently at its peak. According to Kaiko data, the 1% market depth of DOGE, SHIB, PEPE, WIF, BONK, GROK, BABYDOGE, FLOKI, MEME, HarryPotterObamaSonic10Inu and HarryPotterObamaSonic recently created a record high of $128 million.
As a rule of thumb, the higher the liquidity, the healthier the market, because large transactions can be executed without worrying about the price being affected. Looking back, this has tightened the bid-ask spread. However, the transaction cost of Memes is still high. On most exchanges, the bid-ask spread is more than 2 basis points, which supports the above narrative. Kaiko’s report states: “While more and more market makers are trying to provide liquidity for these tokens, they are still considered riskier due to their high volatility.”
Thus, the memes season is not over yet, and it can be expected that the market will experience an influx of volatility in the phase before November.
