Does XIO have too much Liquidity? - Let's look at the data

@ZacharyDash posed an interesting question in his recent liquidity debate:

LIVE Debate | Is the XIO Liquidity Pool (XLP) Over-Funded?

It got me thinking: Does XIO have too much liquidity for its volume?

Not being a blockchain API wizard, I scraped various open databases (webpages: Etherscan, CoinGecko, et al) for some data, and created the following set of charts to try and understand the evolution of XIO liquidity, showing the Volume is rather low for the provided Liquidity (on UniSwap-V2).

Discussion follows after charts…

It’s a tough one… but in my opinion, it does look like XIO has too much liquidity for its volume, and my postulation is that this is because there is not really a method of “locking” up the current circulating supply. The primary incentive is to provide liquidity, and no staking mechanism. It doesn’t really help anything by removing liquidity without another locking mechanism, so until some changes can be made (like with the index), then not much can be done. Perhaps a substantial burn of XIO held in non-circulating wallets? Although, that’s where the funds are for growth.

The circulating supply is currently calculated as:

Circulating = 100 Million XIO - (advisors~900k + foundation~21.5M + founders~10M + social~23M + xlp~20M) address balances

However, the XIO-ETH pair contract address isn’t included in this calculation, which is where many XIO are currently held. As XIO has no staking mechanism, most circulating XIO are held in private wallets accordingly. It’s hard to gauge how many XIO are on the exchanges, but CoinGecko show that the available exchanges have large volume but essentially zero-depth, so I discount them towards this, only taking into account UniSwap.

I’ll leave my opinions to that, and open it up for quesitons/discussion.

I’d also like to see other data-minded citizens provide additional analysis. I’m pretty sure we don’t have an XIO-stats page, but that might be useful time-permitting. These data I could scrape are likely not perfect (e.g. Market Cap, etc), but should provide a decent picture of what’s going on.

All-in-all, a fun, rainy Sunday afternoon digging through somewhat hard-to-get data, and hope it helps y’all as it did me.