Meme Coin Liquidity Soars, But Risk Remains High

Despite record liquidity levels in meme coins, as measured by 1% market depth, the bid-ask spread remains elevated, indicating that these tokens are still considered risky. This is because, while liquidity is increasing, the gap between the highest price buyers are willing to pay and the lowest price sellers are willing to accept, known as the bid-ask spread, remains wide. This suggests that market makers are hesitant to provide liquidity for meme coins due to their high volatility. This is despite significant growth in liquidity for some small-cap meme tokens, with increases ranging from 200% to 4000%.