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What is fundamental analysis?
Fundamental analysis is judging an asset by the underlying factors that drive its supply and demand, rather than by its price chart. For a crypto token that can mean its supply schedule, actual use, fees earned, development activity and the rights it gives holders.
What it means for you
Fundamentals can explain what something might be worth, but they do not tell you when a price will move, and crypto prices can ignore them for long stretches. Many token figures, such as users or fees, come from the project itself; check where a number comes from before relying on it.
How it works
The CFTC defines fundamental analysis as the study of the basic, underlying factors that will affect the supply and demand of what is being traded. It contrasts this with technical analysis, which forecasts from patterns of price change, volume and open interest without regard to those factors. The two meet in the labels overbought and oversold, which the CFTC defines as a price that has risen, or fallen, too steeply and too fast in relation to underlying fundamental factors.
Source: CFTC Glossary · checked 4 October 2026
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