Hi guys,
Is it possible to somehow approximately calculate what impact a specific buy or sell will have on the market cap / price?
For example, the price of a coin is $1, market cap $10M, some whale is dumping $500.000 or buys for $500.000. What price / market cap is it going to be after?
Thanks
Price impact after big buy/sell order does not depend on marketcap. It depends on volume. Big real volume (not wash trading) attracts big market makers that fills orderbook and create liquidity.
Thank you guys!
What, if it’s not on an exchange, but only on pancakeswap?
There is a simple math formula that calculate price based on number of tokes in liquidity pools. Simply - everyone that wants to add liquidity has to add same value in 2 tokens. For example 1000 USDT and 10 AVAX worth 1000USDT (price of avax - 100 USDT). If whale come and buy big chunk of AVAX his order suck AVAX from liquidity pool and puts USDT there. This changes the price to maitain same value of coins in 2 pools.
For example liquidity of BNB on pancake for 10 mln $ order (4.36% slippage):
But don't think that price will stay there for long because arbitrage traders will buy on pancake to sell on other exchanges.