Definition ∞ Trade efficiency refers to the speed, cost, and ease with which transactions can be executed and settled within a financial market. In digital asset markets, high trade efficiency implies low transaction fees, rapid confirmation times, and minimal slippage. Factors such as network congestion, protocol design, and exchange liquidity influence this metric.
Context ∞ Enhancing trade efficiency is a primary objective for many blockchain protocols and digital asset exchanges. Scalability solutions and layer-2 technologies are continuously developed to reduce transaction costs and increase processing speeds. Improved trade efficiency is crucial for attracting mainstream adoption and competing with traditional financial systems.
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