Market Metrics6 min readUpdated: 2024-04-14
Liquidity Depth: The 'Invisible' Security Metric
Liquidity Depth refers to the market's ability to absorb large buy or sell orders without significant price changes.
Volume vs. Depth
A token can have $1M in daily volume but only $10k in liquidity. This is a massive red flag. This means even a small $5k sale would crash the price by 50%.
How to Check Depth
Look for the Liquidity Score on TokenRadar. We measure the available funds in the top-tier pools on Uniswap, Raydium, and other DEXs to ensure you can exit your position when needed.
Continue Your Research
Apply this knowledge by checking the live Risk Scores for trending tokens on our dashboard.
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