Price Disparity

Definition ∞ Price disparity refers to a noticeable difference in the trading price of the same asset across different markets or exchanges. In the digital asset space, this can occur due to varying liquidity, trading volumes, or regional demand. Arbitrageurs often seek to profit from these temporary price differences. Such discrepancies are common in fragmented and less efficient markets.
Context ∞ Price disparity is a recurring subject in crypto market analysis, particularly in news reporting on arbitrage opportunities or market inefficiencies. Current discussions often attribute these differences to varying regulatory environments, fiat on-ramps, and the geographical distribution of liquidity. Future developments aim for greater market integration and increased institutional participation, which could lead to more efficient price discovery and reduced disparities across platforms.