MarketStructure

Definition ∞ Market structure describes the organizational and operational characteristics of a trading venue or financial system. It encompasses factors such as the number of participants, the types of trading mechanisms employed, and the rules governing transactions. Understanding market structure is essential for comprehending price discovery, liquidity dynamics, and the overall efficiency of digital asset exchanges. Different structures can lead to varied trading experiences and risk profiles.
Context ∞ The current context for market structure in digital assets involves ongoing debates about the centralization versus decentralization of trading platforms, the role of order books versus automated market makers (AMMs), and the impact of high-frequency trading. Regulators are increasingly examining these structures to ensure fair competition and prevent market manipulation. The evolution of market structure directly affects accessibility and operational integrity.