Liquidity Ratio: A Simple DEX Trading Trick
Today, let’s take a quick look at DEX trading and one powerful metric many traders ignore: Liquidity Ratio.
Liquidity Ratio helps you understand:
How safe a token is
How easy it is to dump
The risk of rug pulls and dev manipulation
Before entering any DEX trade, always check this first.
Liquidity Ratio Formula
Liquidity ÷ Market Cap × 100 = Liquidity Ratio (%)
Liquidity Ratio Levels
1️⃣ Healthy Liquidity Ratio (20% – 30%+) ✅
This is the safest range.
Example:
Market Cap: $200k
Liquidity: $50k
50k ÷ 200k × 100 = 25%
This token has strong liquidity and