FalconX: Market depth and volume indicators show that Meme coins such as DOGE and SHIB have staying power

Average daily trading volume for major meme coins has fallen to $3 billion from $5.8 billion in March, according to data tracked by institutional crypto exchange FalconX, though that’s still well above the $500 million daily average in January. More importantly, 1% market depth — a measure of liquidity that measures how easy it is to execute large orders at a stable price — remains resilient. The market depth of 1% for DOGE, the world’s largest meme coin by market value, hit $10 million on Friday, the highest in at least a year. Meanwhile, the market depth of SHIB, the second-largest meme coin by market value, is $4 million. In other words, it would take $10 million and $4 million worth of buy/sell orders to move the price of DOGE and SHIB up by 1%, respectively. “These levels are very impressive for altcoin liquidity. For reference, SOL has a market depth of about $20 million. This increase in volume combined with market depth is not common and traditionally occurs in assets that are considered to have staying power, such as SOL recently,” FalconX said in its weekly newsletter. FalconX added: “All in all, if price and volume trends indicate a weak market in the short term, market depth suggests that meme coins may have more staying power than some expect.” (CoinDesk)