Ecosystem Health

Definition ∞ Ecosystem health refers to the overall vitality, sustainability, and operational robustness of a blockchain network or decentralized application environment. This includes metrics such as developer activity, user engagement, transaction volume, network security, and the diversity of applications built upon it. A healthy ecosystem exhibits consistent growth, strong community support, and resilience against external shocks. It indicates a thriving digital environment.
Context ∞ News outlets regularly report on the ecosystem health of major blockchain platforms, using various metrics to gauge their progress and potential. A declining trend in developer contributions or user activity can signal underlying issues, while sustained growth often attracts further investment and innovation. Monitoring ecosystem health is crucial for understanding the long-term prospects of digital asset projects.