Volume Share Model

Definition ∞ A volume share model is an analytical framework used to assess the proportion of total trading activity or market transactions handled by a specific entity, platform, or asset within a defined market. This model helps quantify market dominance, liquidity distribution, and competitive positioning among various participants. It provides essential insights into market structure and operational efficiency.
Context ∞ In digital asset markets, the volume share model is frequently applied to analyze the distribution of trading activity across different cryptocurrency exchanges or decentralized finance (DeFi) protocols. News reports often cite volume share data to discuss market leadership, liquidity trends, and the competitive dynamics within the rapidly evolving crypto trading landscape. These metrics offer valuable market intelligence.