Market Cap/LP Ratio
The Market Cap / LP Ratio widget shows the relationship between a token’s market capitalization (MCAP) and its liquidity pool (LP) value. This metric helps traders evaluate liquidity depth, trading stability, and potential risks in large transactions.
Displays:
MCAP/LP Ratio: Indicates how much of a token’s market value is supported by its liquidity pool.
Historical Chart: Track changes in the ratio over multiple timeframes (1D, 1W, 1M, 1Y).
Share Button: Create a visual card of the ratio and share it directly on X (Twitter).
How It Works
The widget pulls real-time data from the blockchain to calculate the ratio using the formula:
MCAP/LP Ratio = Market Capitalization ÷ Liquidity Pool Value
A high ratio means the token’s market value is large compared to its liquidity — signaling thinner liquidity and potentially higher volatility. A low ratio indicates strong liquidity support and smoother trading conditions.
Use Cases
Assess Liquidity Health: Detects tokens that may have liquidity risks or unstable price movements.
Identify Opportunities: Spot tokens with balanced MCAP/LP ratios that may offer safer entry points.
Risk Management: Avoid projects with liquidity too shallow to sustain large trades.
Compare Projects: Evaluate how liquidity strength varies between tokens.
Why It’s Important
The MCAP/LP ratio is an essential metric for understanding liquidity support and price stability. Tokens with strong LP backing can handle more trading volume without major price slippage, while weak liquidity often signals higher risk.
Share Feature
Click the Share icon to:
Generate a Market Cap / LP Ratio Card a data snapshot showing the token’s liquidity structure.
Download the Card or share it on X (Twitter) with your custom caption.
Use it to display and share insights about a project’s liquidity strength and health.
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