Demand outpaces supply describes a market condition where buyer interest exceeds the available quantity of an asset. This economic principle results in upward price pressure as buyers compete for limited assets, driving their value higher. In digital asset markets, this situation can arise from increasing adoption, positive regulatory news, or a reduction in circulating supply. It indicates a strong market sentiment where assets are quickly absorbed by purchasers.
Context
The dynamic of demand outpaces supply is a primary driver of price appreciation in cryptocurrency markets. News reports often highlight factors contributing to this imbalance, such as institutional purchases or protocol upgrades that reduce token availability. Observing this condition provides crucial context for understanding sustained price rallies and market strength.
Big investors are aggressively buying Chainlink, pushing the available supply on exchanges to its lowest level in two years, setting up a major price squeeze.
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