Overstock refers to a situation where a cryptocurrency exchange or marketplace has an excess amount of a specific cryptocurrency or digital asset that it has not been able to sell. This can occur due to various factors, including market volatility, decreasing demand, or overestimating the potential sales volume.When an asset is overstocked, it may lead to a decrease in its price as sellers try to offload the excess supply. This can create a bearish sentiment around the asset, making it less attractive to potential buyers.To manage overstock, exchanges may implement strategies such as lowering prices, creating promotional sales, or incentivizing trading by offering rewards. By addressing overstock issues, platforms aim to stabilize prices and maintain liquidity in the market. Understanding overstock dynamics can help investors and traders make informed decisions when engaging with specific cryptocurrencies.