Which crypto should I arbitrage on uniswap

Quick Note on Arbitrage

Arbitrage opportunities in crypto (especially on Uniswap) are short‑lived and impossible to guarantee in advance. What screening can do is narrow down to coins that are more likely to present exploitable price gaps: liquid, actively traded, and volatile tokens—similar to or comparable with NKN.

Below is how each filter serves that goal.

Screening Filters

1. Market Cap: 10M – 5B

   • Purpose: Focus on mid‑size tokens that are big enough to trade safely but small enough to still misprice.
   • Rationale:
     • Too small (< $10M): often highly illiquid, with huge slippage and risk of not getting filled—bad for arbitrage.
     • Too large (> $5B): very heavily arbitraged already; prices on centralized exchanges and Uniswap tend to be tight, leaving little edge.
     • This band is where you often see a balance of liquidity + inefficiency, which is what an arbitrageur wants when comparing something like NKN to other tokens.

2. 24h Turnover (Volume): ≥ $3,000,000

   • Purpose: Ensure enough daily trading activity to enter and exit positions without excessive slippage.
   • Rationale:
     • Arbitrage only works in practice if you can move size quickly.
     • A $3M+ 24h turnover threshold filters out dead or thinly traded coins where a modest trade can move the market and erase your arbitrage spread.
     • This aligns with the kind of liquidity you’d want when considering NKN‑like tokens on Uniswap.

3. 24h Volatility: ≥ 3%

   • Purpose: Target tokens with meaningful intraday price movement, which creates arbitrage spreads.
   • Rationale:
     • If a token barely moves, there’s rarely enough price divergence between Uniswap and other venues to cover fees, gas, and slippage.
     • A minimum ~3% daily volatility ensures you’re looking at assets where price dislocations are plausible—especially relevant if you’re scanning for pairs vs NKN or similar assets.

4. 24h Price Range: ≥ 0.04 (e.g., ≥ $0.04 move or similar threshold)

   • Purpose: Add another check that absolute intraday price swings are not trivial.
   • Rationale:
     • Even if % volatility is acceptable, a token priced extremely low with micro‑moves might not generate absolute profit big enough to beat transaction costs.
     • Requiring a minimum absolute range helps surface tokens where an observed arbitrage spread can translate into a meaningful dollar profit.

5. is_trending: True

   • Purpose: Focus on tokens currently attracting attention, volume, and order flow.
   • Rationale:
     • Trending coins on Uniswap are where you often see temporary imbalances as liquidity flows in unevenly across pools and exchanges.
     • High attention + fast flows ⇒ higher chance of short‑term mispricing between Uniswap and other markets.
     • This also pairs well with an NKN‑focused query, since you likely want tokens in a similar attention/liquidity regime for viable arbitrage setups.

Why Results Match Your Arbitrage Question (NKN / Uniswap)

• The filters collectively prioritize liquid, mid‑cap, volatile, and currently active tokens—conditions that are favorable for finding realistic arbitrage opportunities rather than theoretical ones.
• Compared to NKN, the screened tokens should:
  • Trade with sufficient volume on major venues (including Uniswap) so trades are executable.
  • Exhibit enough volatility and price range for spreads to appear between Uniswap and other markets.
  • Be in a size segment where professional arbitrage is present but inefficiencies still occur.

If you’d like, I can next outline how to compare NKN’s Uniswap pool price vs centralized exchange prices and then apply the same method to the screened tokens.