Definition ∞ The capacity of a market or system to absorb incoming demand for a particular asset or service. This refers to the ability of supply to meet user interest without significant price inflation or service degradation. High demand absorption indicates a resilient and scalable system.
Context ∞ Discussions around demand absorption are pertinent to the scalability and user experience of blockchain networks and digital assets. News often covers whether a network can handle increased transaction volumes or if a digital asset can accommodate growing investor interest without compromising performance. This metric is key for assessing network utility and potential for mass adoption.
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