Lower Bound

Definition ∞ A lower bound represents the minimum possible value or threshold for a particular metric, asset price, or system parameter. In financial analysis, it can signify a fundamental support level below which an asset’s price is unlikely to fall under normal conditions. For cryptographic systems, it might define the minimum security strength required. This concept helps establish expectations and risk assessments.
Context ∞ In crypto news, the term lower bound is frequently used in technical analysis and market commentary to describe potential price floors for digital assets. Analysts might refer to historical data or fundamental valuations to determine these levels. For blockchain protocols, a lower bound could relate to minimum staking requirements or network security thresholds. Understanding these limits assists in evaluating market stability and potential downside risk.