Pepe is at 70 something, solana is at 50 something, BTC and ETH somewhere around the same level as SPX
Most people overlook this indicator, despite the fact that it directly determines the price impact of buying into a coin.
OGs probably all know this, but let me explain it through an example for those who are newer to crypto:
Coin A (86% diamond hands)
$1.01 → 80,000 tokens for sale in the orderbook
$1.02 → 120,000
$1.03 → 150,000
$1.04 → 180,000
$1.05 → 250,000
A market buy of 800,000 tokens would clear every sell order up to $1.05. --> price goes up to $1.05
Coin B (45% diamond hands)
$1.01 → 700,000 tokens for sale in the orderbook
$1.02 → 900,000
$1.03 → 1,200,000
$1.04 → 1,400,000
A market buy of 800,000 tokens would clear only the $1.01 sell order. --> price goes up to $1.01
This is how it works on CEXs, whereas on DEXs, the price rises as tokens are bought out of the liquidity pool. But this is where diamond handing comes into play: the price doesn't increase linearly as the pool's token reserves shrink. Instead, it rises at an accelerating rate.
Let's look at the example:
Suppose a liquidity pool initially contains 1,000,000 tokens and 100,000 USDC. How the price changes as the token reserves decrease (based on the AMM formula used by DEXs such as Uniswap):
1,000,000 tokens left in the pool → $0.005
500,000 tokens left → $0.02 (4×)
250,000 tokens left → $0.08 (16×)
125,000 tokens left → $0.32 (64×)
62,500 tokens left → $1.28 (256×)
31,250 tokens left → $5.12 per (1,024×)
15,625 tokens left → $20.48 per (4,096×)
7,812.5 tokens left → $81.92 per (16,384×)
As you can see, every time the token reserves are cut in half, the price quadruples relative to the initial price. Lets suppose, the pool has 125k tokens left, and somebody buys 7812.5 tokens. The prices changes 13.8%. Lets buy the same amount of tokens when there is only 15,625 left. The result is a 300% pump.
This is why diamond handedness matters. The exact same amount of buying can move one coin much more than another.
Let's HODL and flip the stock market!