Structural Weakness

Definition ∞ Structural weakness refers to fundamental flaws or vulnerabilities within a market, system, or digital asset protocol that can lead to instability or failure. These weaknesses might include inadequate security measures, insufficient liquidity, flawed economic models, or poor governance structures. Such inherent issues can make a system susceptible to external shocks or internal exploitation. They represent foundational problems rather than temporary market fluctuations.
Context ∞ Structural weakness is a recurring concern in crypto news, particularly after significant market events or protocol exploits. Debates often focus on identifying these underlying vulnerabilities in new DeFi applications or blockchain architectures before they cause widespread disruption. Understanding these inherent flaws provides immediate, actionable context for evaluating the long-term viability and risk profiles of various digital asset projects and market segments.