Definition ∞ Structural Market Fragility describes an inherent weakness within a market’s underlying framework or composition that renders it susceptible to rapid destabilization or cascading failures. This refers to systemic vulnerabilities that can affect market stability. It indicates a predisposition to severe disruption.
Context ∞ Discussions about structural market fragility often arise during periods of extreme volatility or following significant market events in the cryptocurrency space. News reports may analyze factors such as concentrated liquidity, excessive leverage, or interconnectedness between protocols as contributors to this fragility. This underscores the need for robust market infrastructure and sound risk management.