Walrus functions as a meme asset with price discovery driven almost entirely by liquidity and participation. There is no underlying utility or cash-flow mechanism to anchor valuation, so market structure matters more than narrative. When volume expands, Walrus can move aggressively due to thin order books and speculative positioning. These conditions favor short-term momentum trades and fast rotations.
When liquidity contracts, price typically compresses or retraces sharply. With limited structural demand, downside accelerates during low-participation periods. This makes Walrus poorly suited for long-term holding strategies and better aligned with tactical exposure during brief risk-on phases. Traders should treat entries and exits as volume-dependent decisions rather than conviction-based positions.
Key point:
👉 Walrus is a liquidity-driven instrument, not a value asset.
