The current landscape of new project tokens is overwhelming, with an influx of options available to investors. This saturation has created a challenging environment for liquidity providers. Rather than placing buy orders to help stabilize prices, many liquidity providers are opting to sell their holdings to secure profits. This behavior contributes to a lack of support for the price of meme coins, leading to significant declines in value, particularly evident during overnight trading sessions. The rapid sell-off by liquidity providers, without corresponding buy orders, results in a pronounced crash for these types of cryptocurrencies. The situation highlights the delicate balance between profit-taking and maintaining price stability in a market flooded with new tokens.
