Trading in prominent meme coins has become increasingly fluid as liquidity, gauged by 1% market depth, reaches unprecedented levels, as per data from Paris-based analytics firm Kaiko.

Recent figures reveal that the aggregate liquidity for meme coins such as DOGE, SHIB, PEPE, WIF, BONK, GROK, BABYDOGE, FLOKI, MEME, HarryPotterObamaSonic10Inu, and HarryPotterObamaSonic soared to $128 million. This metric reflects the total value of buy and sell orders within a 1% range of the current market price. Enhanced liquidity, indicated by a higher figure, facilitates the execution of large trades at stable prices.

Typically, heightened liquidity results in a narrower bid-ask spread—the gap between the highest price a buyer is willing to pay and the lowest price a seller will accept. Tighter spreads lead to more favorable trading prices and lower transaction costs. However, Kaiko notes that meme coins are an exception; their bid-ask spreads persist above 2 basis points on most centralized exchanges.

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“This implies that despite the influx of market makers providing liquidity for these tokens, they remain perceived as risky due to their high volatility,” Kaiko commented.

The liquidity surge partly stems from price increases, yet many small-cap meme tokens, such as Dogwifhat (WIF), Memecoin (MEME), and Book of Meme (BOME), have witnessed substantial growth in liquidity in their native units, ranging from 200% to 4000%, according to Kaiko’s weekly newsletter.