Cycle Expansion

Definition ∞ Cycle Expansion refers to a period of sustained growth and increasing activity within a market or economic system, often following a contraction phase. In cryptocurrency, this term describes an upward trend characterized by rising asset prices, increased trading volumes, and heightened development of new protocols and applications. It signifies a broader market recovery and renewed investor confidence.
Context ∞ Analysts frequently discuss cycle expansion in relation to the cyclical nature of cryptocurrency markets, often attempting to identify its onset and duration. Understanding this phase is crucial for investors and project developers alike, as it influences strategic decisions regarding investment and resource allocation. Observing metrics such as network activity and capital inflows provides context for assessing the current stage of market expansion.