Market Depth

Definition ∞ Market depth refers to the volume of buy and sell orders for a particular digital asset at various price levels, as shown in an order book. It indicates how much of an asset can be traded without significantly affecting its price. High market depth implies robust liquidity, allowing larger trades to be executed with minimal price movement.
Context ∞ News reports often reference market depth when assessing the liquidity and stability of a cryptocurrency, especially during periods of high price variability or when analyzing the viability of large institutional trades. The ongoing discussion concerns the differences in market depth between centralized and decentralized exchanges, and its implications for efficient price discovery. Monitoring improvements in liquidity aggregation and trading infrastructure will provide valuable insights.