Most people think that an altcoin season needs billions
The answer: No
Imagine: Market cap of $10 million
Price: $10
Do you think it needs $10 million to reach $20?
Never just $500,000
Selling 200k of the coin drops its price to $5?
No one explains this to you
This article will completely change your perspective @GiveRep
It doesn't matter how long you've been in the crypto world, many still do not understand a very basic point:
How liquidity really works
And how much money is needed to move or drop the price of a cryptocurrency
This ignorance could cost you a lot (and may have cost you before). Let’s explain it step by step
1. Basic concepts:
To understand the growth of a cryptocurrency, digital asset, or even a stock, you need to know the difference between:
Market Cap
Fully diluted market cap (FDV)
Liquidity
Token unlock schedule (Vesting/Unlocks)
Market cap = Current token price × Circulating supply
But don't confuse market cap with FDV.
FDV = Price × Total Supply (even if not yet launched)
This difference is unknown to many beginners, causing them to be the liquidity that early investors (VCs) exit with at every new unlock.
2. Why are FDV and unlock schedules important?
Some projects launch monthly tokens that equal double the current supply!
The market cap may seem low (e.g., $10 million), but the real FDV could be $200 million.
With every new unlock, the supply increases and pressures the price down.
Example: $APT launched with 130 million circulating tokens out of a billion, and with every unlock came massive sell pressure.
Although the market cap seemed 'cheap' at $500 million, the FDV was over $4 billion.
The conclusion?
Always check unlock schedules — sometimes you think you've entered early, but you're just 'exit liquidity' for others.
3. Liquidity: The real pivot for price movement
This is where the fun begins.
Many think:
Token X is priced at $1 with a supply of 1 billion = 1 billion market cap.
To raise the price to $2 we need another billion? Totally wrong.
Liquidity is the most important factor.
Liquidity means the ability to sell or buy at the current price without significantly affecting the market.
A coin with a billion market cap but only $30 million in liquidity can have its price doubled by a buying pressure of just $15 million — not a billion.
And in the same way, it can collapse just as quickly if a sale of the same value enters.
4. Real-world example:
The $JELLYJELLY token had a market cap of $60 million, but it dropped 50% after a sale of only $1.2 million.
5. Solana meme coins: Weak liquidity, crazy volatility
Some meme coins on Solana have a market cap reaching $300 million, but their liquidity is only $5 million.
Selling or buying just 1% of the supply can raise or drop the price by 100%.
And this is why memes fly fast — but that doesn't mean whales exit at the top easily.
In reality, every major sell puts significant pressure on the price.
6. How is manipulation done?
Many developers list their tokens on only one or two platforms (DEX), with very limited liquidity.
8. Final advice for new traders:
If you are new to the market, beware of being deceived by the numbers alone.
Don't rely on the price of the currency alone.
Don't be impressed by the apparent market cap.
Don't assume that 'you're early' just because the price seems low.
Always start with analysis:
The FDV: Is the project huge in hiding?
Unlock schedule: Is there a wave of selling pressure coming?
Real liquidity: Can buying or selling move the price quickly?
Platforms where the token is listed: Are they DEXs with a few liquidity providers?
The intention of the project: Is there a real product or just a passing hype?
9. How do you protect yourself?
Use tools like:
Token Unlocks: To monitor unlock schedules
DEXTools and Birdeye: To measure real liquidity
CoinMarketCap and CoinGecko: To analyze the supply and compare it with market cap
Follow reliable analysis accounts, and don't chase trends blindly.
10. The final word:
In the crypto market, money is not made from speed, but from understanding.
Financial knowledge and the ability to read the market are your real weapons.
Don't be the exit liquidity for the project's whales.
Be the smart one who knows when to enter… and when to exit.
