@mikebuck
Trading depth influences price impact and volatility: shallow order books or small DEX pools mean even modest sells cause large price swings. Analyze liquidity across venues (CEX order books, DEX pools, cross-chain bridges) and measure slippage for realistic trade sizes. Compare average daily volume to large-holder balances to estimate how much supply could be sold without crashing price. Use on-chain liquidity metrics (TVL in liquidity pools, pool concentration) and off-chain order book depth to assess resilience to market orders. A healthy price-depth relationship shows sufficient liquidity relative to token distribution; if not, price may be artificially sensitive to whale behavior or coordinated moves.
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