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How Does Low Liquidity Affect the Reliability of Market Cap?

Low liquidity allows small trades to skew the price, making the Market Cap unreliable.
Greeks.Live29.10.25

How Does Low Liquidity Affect the Reliability of Market Cap?

Low liquidity means that large trades can significantly move the price, making the last traded price an unreliable basis for calculating the total market value. A small trade can drastically inflate the Market Cap if the circulating supply is multiplied by an artificially high price.

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