Market Competitiveness

Definition ∞ Market competitiveness refers to the degree of rivalry among firms operating within a particular industry or sector. It is characterized by factors such as the number of participants, the availability of substitutes, and the ease of entry and exit. A highly competitive market generally leads to greater efficiency and innovation.
Context ∞ The digital asset market exhibits varying degrees of competitiveness across different segments, from major cryptocurrencies to niche DeFi protocols. Discussions often center on the dominance of established players versus the emergence of new projects and the impact of regulatory frameworks on market structure. Analyzing market competitiveness provides insight into potential growth areas and the sustainability of various digital asset ventures.