Market Distribution

Definition ∞ Market distribution describes how a particular asset or token is held and circulated among participants within a market. It examines the concentration of ownership, the velocity of transactions, and the accessibility of the asset to various investor types. Understanding market distribution provides insight into liquidity, potential price manipulation, and the overall health of an asset’s ecosystem.
Context ∞ Discussions on market distribution in the crypto space often involve analyzing whale holdings, exchange balances, and the concentration of ownership in decentralized finance (DeFi) protocols. Analysts are examining these patterns to assess the potential for large sell-offs or the influence of concentrated ownership on price discovery. Future developments will likely involve more sophisticated on-chain analytics to track and interpret the evolving distribution of digital assets.