Definition ∞ Retail dominance describes a market condition where individual, non-institutional investors account for the majority of trading activity and influence market trends. This often results in more volatile price movements due to less coordinated actions and greater susceptibility to sentiment shifts. It contrasts with institutional dominance, which typically brings more stable, larger-scale capital movements. Such periods can be unpredictable.
Context ∞ The cryptocurrency market has historically experienced periods of retail dominance, leading to rapid price swings and meme coin phenomena. While institutional participation has grown, understanding the current balance between retail and institutional influence remains crucial. Observing smaller transaction volumes and social media trends helps gauge this dynamic.
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