Fundamental Analysis Scenario
Qualitative Fundamental Analysis
Crypto Fundamental Analysis
Partitioning Crypto Use Cases: Storage and Payments Examples
What is the overall market for this use case?
How long will this market take to mature?
What percentage of the market is this project likely to capture?
Does this crypto project have major competitors?
What is the market for international remittances, decentralized payment infrastructure, and a fiat currency alternative?
If BTC captures (insert number)% of this market, what will that equate to in terms of market cap?
If that market cap prediction is correct, what would each BTC be valued at?
How many BTC have been permanently lost?
Is BTC likely to achieve market dominance for these use cases?
Will other cryptocurrencies rise to challenge BTC?
Analyzing a Blockchain’s Intrinsic Value
Fundamental analysis tries to determine the fair market value of a stock or crypto.
If the fair market value is different from the current market price, there is likely a profitable buying or selling opportunity for the asset in question (as the market price is expected to reach equilibrium with the assessed fair market value).
There are two main branches of fundamental analysis. Quantitative fundamental analysis looks at metrics and hard data. Qualitative fundamental analysis looks at characteristics related to quality and is more nuanced and subjective.
Fundamental analysis is typically used to predict price movements over a longer time period.
Analysts and traders use fundamental analysis to assess the future price of crypto assets based on their adoption, use cases, competition, predicted future market share, and various other metrics.