Liquidity is the life blood of any coin on Solana. The fuller the liquidity block is, the stronger that coin actually is. If the block is empty with low liquidity, the market cap is fake and a small sell from one big holder can kill it.
Its easy to pump a thin liquidity coin up into a fake looking market cap, but only the first big holders to sell actually win. On a high liquidity ratio its much harder to move the price down, but way easier to move it up when real buying shows up.
If there is a big buy on thin liquidity, that buyer will pump the price but lose big value on the buy because of massive slippage. Then people dump on him and the liquidity wont support him so the price crashes hard. The opposite happens on a thick liquidity coin ā the buy is much more efficient, the price moves cleaner, and the liquidity actually supports the move instead of fighting it.
If we start supporting coins with good liquidity, they will support us and help keep new users in the system. We have to move away from these thin liquidity casinos and bring real strength back to the ecosystem.
If you want to see billion dollar coins that actually hold their range long term, it has to be a coin that supports itself and its holders.