Economic Value

Definition ∞ Economic value, in the context of digital assets, represents the utility or worth attributed to a cryptocurrency, token, or blockchain application by market participants. This value can stem from its function as a medium of exchange, a store of value, or its role in decentralized applications. It is often determined by factors such as scarcity, network effects, technological utility, and market demand. The perception of economic value drives investment and adoption within the digital asset space.
Context ∞ Financial news consistently discusses the economic value of various digital assets, analyzing price movements, adoption rates, and technological advancements. Debates frequently center on the intrinsic versus speculative value of cryptocurrencies. Understanding the sources of economic value helps investors and analysts assess potential growth and risk. Regulatory bodies also consider economic value when classifying digital assets for oversight purposes.