Supply Pressure

Definition ∞ Supply pressure describes the force exerted on an asset’s price by the availability of that asset in the market. When supply increases or demand decreases, this pressure can lead to a decline in price. Monitoring supply pressure is a critical component of asset valuation and market analysis.
Context ∞ The current discourse regarding supply pressure in digital asset markets often centers on the rate of new token issuance, staking rewards, and the unlocking of vested tokens. Analysts are closely examining these factors to gauge potential downward price movements. Future developments to monitor include the impact of token burn mechanisms and the evolving supply dynamics of various blockchain protocols.