Definition ∞ Structural Undervaluation occurs when a digital asset’s market price is consistently lower than its intrinsic or fundamental value, as determined by underlying economic factors or utility. This condition often results from market inefficiencies, lack of awareness, or temporary negative sentiment. It suggests that the asset has unrecognized potential for appreciation based on its core characteristics. Identifying structural undervaluation is a key objective for value investors.
Context ∞ The search for Structural Undervaluation is a continuous pursuit for many investors in the digital asset space, seeking opportunities where market price does not yet reflect true utility or adoption. News reports sometimes highlight specific protocols or tokens that, despite strong technical foundations or growing user bases, trade below what analysts consider their fair value. The discussion often revolves around whether current market conditions are obscuring these fundamental strengths.