Definition ∞ Market aggregation involves combining data from multiple sources to present a comprehensive view of market activity. In digital asset markets, this process gathers price, volume, and order book information from various exchanges and trading platforms. The objective is to provide users with a more accurate and complete understanding of an asset’s true market price and liquidity, reducing discrepancies and improving trading decisions. Aggregation tools are critical for efficient price discovery and minimizing slippage across fragmented markets.
Context ∞ The role of market aggregation is increasingly vital in the fragmented digital asset landscape, where liquidity is spread across numerous venues. A key discussion revolves around the accuracy and latency of aggregated data, especially during periods of high volatility, and the methods used to prevent data manipulation. Future developments will likely involve more sophisticated aggregation algorithms, integrating data from decentralized exchanges and dark pools, to provide an even more holistic market perspective.