More people trading it. Less liquid investments tend to be a lot more volatile, because there are fewer people with orders in the order book and fewer people p

More people trading it. Less liquid investments tend to be a lot more volatile, because there are fewer people with orders in the order book and fewer people paying attention to take advantage of market inefficiencies. With some altcoins you can cause a 10x increase in price with a few thousand dollars. Why? Because with a few thousand dollars, you've bought up all the supply in the order book, become the monopoly provider, and can name your price for anyone that comes around after you wanting to buy. With more participants, there's going to be someone out there that undercuts your 10x ask and offers a more reasonable price. For the statistically inclined, you could look at this as an application of the central limit theorem. One random variable (the price you're asking for an asset) could be all over the place. A million random variables (each a market participant) added together tend toward a normal distribution with the sample mean converging to the population mean.