Definition ∞ Market floor fragility describes a condition in digital asset markets where the lowest price point for an asset or collection of assets is easily breached due to weak buying support. This indicates a lack of strong demand at current price levels, making the asset susceptible to further price declines. It often results from insufficient liquidity or waning investor interest.
Context ∞ This term is frequently applied to NFT collections or less liquid altcoins where price discovery is highly dependent on a small number of buyers. News reports may highlight market floor fragility when discussing the sustainability of asset valuations or the risk of rapid price depreciation. It signals a vulnerable market structure.
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