Liquidity of $DOGE and $SHIB shows that meme tokens have staying power

Last week, leading meme coins such as DOGE, SHIB, WIF, PEPE, FLOKI and BONK suffered larger losses than Bitcoin, falling between 19 and 27 percent, according to CoinDesk data.

The leading cryptocurrency by market value fell 6% as rising geopolitical tensions in the Middle East drove investors away from risk assets and into safe havens such as gold.

The decline in prices also caused a decrease in transaction volumes. According to data tracked by FalconX, average daily trading volume on leading meme coins dropped to $3 billion from $5.8 billion recorded in March. However, it is still quite high compared to the daily figures of $500 million recorded in January.

More importantly, the liquidity measure used to measure how easy it is to execute large orders at stable prices (market depth of 1%) remains resilient.

The 1% market depth for DOGE, the world's largest meme coin by market cap, reached $10 million on Friday, its highest level in at least a year, according to FalconX. The market depth of SHIB, the second largest meme token, is 4 million dollars.

FalconX's statements continue as follows:

“These levels are very important for altcoin liquidity. S O L's market depth is approximately $20 million. Such increases in cumulative volumes with market depth are not that common and are something that has been particularly noted recently by assets believed to have staying power.

“Consequently, if price and volume trends point to a tired market in the short term, market depth suggests some of the meme coins are more persistent than anticipated.”