Many believe that the market needs trillions to have an altcoin season.

But $SOL, $ONDO , $WIF , $MKR or any of your low market value gems do not need new millions to inflate them.

Do you think a currency worth 10 dollars in a market valued at 10 million dollars needs another 10 million dollars to reach 20 million dollars?

Wrong!

Here’s the secret

I often hear from major traders that the growth of certain altcoins is impossible due to their high market cap.

They often say: "It takes N billion for prices to grow N times" about large assets like Solana.

These opinions are incorrect, and I will explain why ⇩

But first, let’s clarify some concepts:

Market cap is a measure used to estimate the total market value of a cryptocurrency asset.

Determined by two components:

➜ Asset price

➜ Its supply

The price is the point where supply and demand curves intersect.

Therefore, it is determined by both demand and supply.

How most people think, even those with years of market experience:

● Example:

$STRK at $1 with a market cap of 1B = $1B.

"To double the price, you will need $1B in investments."

This seems like a simple logical puzzle, but reality presents a crucial factor: liquidity.

Liquidity in cryptocurrencies refers to the ability to exchange a cryptocurrency quickly at its current market price without a significant loss in value.

Those involved with meme coins often face this problem: a large market cap but zero liquidity.

To trade tokens on exchanges, sufficient liquidity is essential. You cannot sell more tokens than liquidity allows.

Imagine that $STRK at $1 is only listed on 1inch, with liquidity of $100M in the $STRK - $USDC pool.

We have:

- Price: $1

- Market cap: $1B

- Liquidity in the pair: $100M

➜ Based on the definition of price, buying $50M of $STRK will inevitably double the token's price, without needing to inject $1B.

The market cap will be set at $2 billion, with only $50 million in flows.

Big players understand these mechanisms and use them in their manipulations, as I explained in a recent thread.

Meme coin creators often use this strategy.

Most meme coins are typically listed on two or three decentralized exchanges with limited liquidity pools.

These settings allow for significant price manipulation, creating a sense of fear of loss among investors.

You don’t always need billions in investments to change the market cap or increase the token price.

Limited liquidity with high demand can drive prices up due to basic economic principles. Keep that in mind while researching.

I hope you found this article helpful.

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