Market Fundamentals

Definition ∞ Market fundamentals in cryptocurrency refer to the underlying factors that determine the intrinsic value and long-term prospects of a digital asset or blockchain network. These factors include technological advancements, network adoption rates, developer activity, regulatory environment, and macroeconomic conditions. Unlike technical analysis, which focuses on price charts, fundamental analysis evaluates these core elements to assess an asset’s health and potential.
Context ∞ News and analysis often reference market fundamentals to explain long-term price trends and distinguish sustainable projects from speculative ventures. Reports on network upgrades, user growth, or new partnerships directly relate to these fundamentals, providing context for an asset’s valuation. Investors closely watch for improvements or deteriorations in these core aspects to make informed decisions about their digital asset holdings.