Definition ∞ A demand strength metric is an analytical tool used to assess the level of buying pressure or user interest for a particular digital asset or blockchain network. These metrics quantify the intensity of market participation, often through indicators like transaction volume, active addresses, or order book depth. They provide insight into the underlying interest in an asset, independent of its immediate price movements. A high value suggests robust interest, potentially supporting future price appreciation.
Context ∞ Demand strength metrics are frequently cited in cryptocurrency news and analysis to gauge the health and potential trajectory of digital assets. Analysts employ these indicators to confirm price trends or to identify periods of underlying accumulation that may precede significant price changes. The discussion often revolves around which metrics offer the most reliable signals in different market conditions. Understanding these metrics helps investors evaluate the genuine interest and utility driving an asset’s market performance.
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