this is already the "option" you can place orders with $0.01 increments in most exchanges and at least on one of them they use the 8 decimal points like bitcoin has LOL. but that doesn't fix the volatility problem because it is the "option" to open orders like that, in a market you can not force people to set their orders at the price you decide. they can choose to place an order $0.01 above the previous one or $100 above the previous one. not to mention that this doesn't make sense the higher the price goes. for example you can't expect people to place a buy order at $50,000.01 then at $50,000.02

the way to fix it is to find a way to get more people to trust exchanges enough to open orders in first place instead of going elsewhere to trade bitcoin or pull their money out every time they make a trade. so that we can have a more crowded orderbook so one small dump can not crash the price big time.