Demand Strength

Definition ∞ Demand strength quantifies the intensity of buyer interest and purchasing activity for a particular digital asset or within the broader crypto market. High demand strength indicates robust buying pressure, often leading to price appreciation and increased trading volume. It reflects investor confidence, utility of the asset, or speculative interest. This metric is a key indicator of market momentum.
Context ∞ News articles often cite demand strength when reporting on market rallies, new project launches, or significant institutional inflows into the crypto space. Metrics like order book depth, trading volume, and stablecoin inflows are frequently used to assess this strength. Understanding demand strength helps observers gauge market sentiment and potential price movements for digital assets.