Dynamic pricing is a strategy where the price of an asset changes based on current market conditions, demand, and supply. In the cryptocurrency market, prices can fluctuate rapidly due to various factors like trading volume, news events, and market sentiment.For instance, if a cryptocurrency sees a surge in demand due to positive news, its price may increase almost instantly. Conversely, if there’s negative news or sentiment, prices can drop quickly. This responsiveness allows traders and platforms to adjust prices in real-time to reflect what buyers are willing to pay.Dynamic pricing can also apply to exchanges, where transaction fees may vary based on network congestion or the size of a transaction. This approach can enhance liquidity and optimize profit margins for exchanges and traders alike.Overall, dynamic pricing plays a crucial role in making the market more responsive to changes, impacting trading strategies and consumer behavior significantly.