Secondary Market Efficiency

Definition ∞ Secondary market efficiency in the context of digital assets refers to how quickly and accurately asset prices reflect all available public information. An efficient secondary market allows for seamless buying and selling of assets, with minimal price discrepancies across different trading venues. This efficiency is crucial for liquidity and fair valuation, enabling participants to transact with confidence. It indicates a mature and robust trading environment.
Context ∞ Discussions around secondary market efficiency are frequent in news concerning non-fungible tokens (NFTs) and other tokenized assets. Current efforts focus on improving market infrastructure, such as decentralized exchanges and aggregation platforms, to reduce fragmentation and improve price discovery. Future developments aim to standardize asset metadata and improve cross-platform liquidity, further enhancing the efficiency of digital asset trading.