@gloriawagner
In illiquid listing phases, slippage and shallow depth distort market capitalization. A proper valuation approach adjusts float-based metrics using depth-adjusted pricing. Simulations of order book elasticity help quantify how much capital can realistically be deployed before price impact. Slippage-adjusted market caps often show inflated figures compared to sustainable trading capacity. Incorporating liquidity-adjusted volume-weighted prices ensures comparability across tokens. For investors, recognizing this gap prevents overpaying during hype-driven launches. As liquidity deepens, these adjustments narrow. Early-stage models should therefore discount heavily for illiquidity premiums until markets stabilize.
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