Latent Demand

Definition ∞ Latent demand represents an underlying, unexpressed desire or need for a particular product, service, or digital asset that has not yet been fully realized or acted upon in the market. In cryptocurrency, this might refer to a significant potential user base or capital inflow waiting for specific market conditions, technological improvements, or regulatory clarity before entering the space. Identifying latent demand is crucial for projecting future market growth and adoption rates. It represents an untapped market potential.
Context ∞ Analysts often discuss latent demand when forecasting the future growth of specific crypto sectors, such as institutional DeFi or Web3 gaming. News articles might speculate on factors that could unlock this demand, such as clearer regulations or more user-friendly interfaces. The existence of substantial latent demand can indicate significant long-term upside for digital assets.