Definition ∞ Digital asset returns represent the financial gains or losses realized from holding or trading digital assets, such as cryptocurrencies or non-fungible tokens, over a specific period. These returns are typically measured as a percentage change in value, accounting for both price appreciation and any yield generated through staking or lending. They are a primary metric for evaluating the investment performance of various digital assets. Understanding these returns is essential for assessing market trends and individual asset performance.
Context ∞ Digital asset returns are a constant focus in crypto news, with market analysts scrutinizing performance metrics and factors influencing value fluctuations. Discussions often involve the high volatility of these assets and the diverse strategies investors employ to generate positive returns. A critical future development is the maturation of the digital asset market, potentially leading to more stable and predictable return profiles as institutional participation grows.