Definition ∞ Economic Fundamentals refer to the underlying qualitative and quantitative data that determine the real value of an asset, company, or economy. These include factors such as supply and demand, utility, adoption rates, technological advancements, and regulatory environments. They provide a basis for assessing intrinsic worth, distinct from short-term market fluctuations. Analyzing economic fundamentals helps predict long-term trends.
Context ∞ When discussing digital assets, economic fundamentals extend beyond traditional metrics to include network activity, developer engagement, and the utility of a blockchain protocol. News often analyzes these factors to evaluate the sustainability and growth potential of cryptocurrencies, moving beyond purely speculative considerations. A strong grounding in economic fundamentals is increasingly seen as essential for informed decision-making in the digital asset space.