AERO pump to $300M mcap: why thin liquidity and 10% float matter
Thread134 words
Notes AERO hit about $300M mcap within 9 hours with only $24k of Uniswap liquidity (0.008% of mcap) and 88% of supply locked, so little volume moves price. Corrects that Aerodrome's own pool holds about $1.8M.
Key claims
Circulating mcap about $30M, roughly a 10% float
Uniswap liquidity $24k, Aerodrome pool liquidity about $1.8M
88% of supply locked
Wild to see $AERO pump to USD 300m mcap within 9 hours 馃搱
But keep in mind that what determines price is liquidity
In the case of $AERO liq is only USD 24k, equaling 0.008% of mcap, which means it takes significantly less volume to move price 馃毃
more about price impact below馃憞
dailydefi.org/articles/price-impact-and-how-to-calculate/
And yes, $AERO has a low float and a large part of supply is locked (88%)
Circulating mcap is around 30m, equaling roughly a 10% float
Based on circulating mcap, liq hence is 0.08%
Still low though and not much volume is needed to move price, which is the main point here
Correction: As @plsletmeintern and @0x3vz4 pointed out, 24k liq is only on Uniswap. On @aeroxyz liquidity is around USD 1.8m
Link to @aeroxyz liq pool on @BaseScanHQ:
basescan.org/address/0x2223f9fe624f69da4d8256a7bcc9104fba7f8f75
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