GRASS rose 10% in 24 hours, closing at $0.75. Its market cap is over $500 million, but just $1.9 million traded in a day. That ratio speaks for itself—the turnover is absurdly low.
For a $500 million asset, even a market maker’s normal orders would usually be larger than that. The price can be pushed up because there are few sellers, but not many buyers either. The order book is so thin that orders worth just tens of thousands of dollars can leave a crater on the chart.
There’s little resistance on the way up. But when the price falls, who’s going to buy? One glance at the bid-side depth tells you all you need to know.
For a $500 million asset, even a market maker’s normal orders would usually be larger than that. The price can be pushed up because there are few sellers, but not many buyers either. The order book is so thin that orders worth just tens of thousands of dollars can leave a crater on the chart.
There’s little resistance on the way up. But when the price falls, who’s going to buy? One glance at the bid-side depth tells you all you need to know.