Market Demand Strength

Definition ∞ Market Demand Strength assesses the collective buying interest for a particular digital asset within a specified period. This indicates the degree to which purchasers are willing to acquire the asset at current or increasing prices. High demand strength often signals potential for price appreciation. It reflects positive investor sentiment.
Context ∞ Crypto news frequently analyzes market demand strength using trading volumes, order book depth, and on-chain metrics to forecast price movements and assess investor sentiment. Sustained demand is a key factor for asset valuation and market stability. Shifts in demand strength can precede significant market rallies or corrections.