Occurs because of low liquidity that can not attain demand, growing an asset`s price. Ran Hammer, vp of enterprise improvement at Orbs, a decentralized public layer-1 blockchain infrastructure provider, advised CoinDesk:
In the case of EOS and TRX [two popular ERC20 tokens], their marketplace cap continues to be below $three billion. That manner they're now no longer but broadly utilized by users. As extra humans use them and begin buying and selling them on exchanges, their marketplace cap will rise.
Slippage additionally influences the fee of cryptocurrency property due to the fact it may have an effect on its price. For example, if there may be slippage in cryptocurrency buying and selling costs, it may have a big effect on costs due to the fact it may make BTC or ETH extra steeply-priced or inexpensive than expected.