Course Content
A Guide to Cryptocurrency Fundamental Analysis
Crypto fundamental analysis involves taking a deep dive into the available information about a financial asset. For instance, you might look at its use cases, the number of people using it, or the team behind the project. Your goal is to reach a conclusion on whether the asset is overvalued or undervalued. At that stage, you can use your insights to inform your trading positions.
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Introduction
What is fundamental analysis (FA)?
The problem with crypto fundamental analysis
On-chain metrics
Project metrics
Financial metrics
Fundamental analysis indicators, metrics, and tools
Combining metrics and creating FA indicators
Key FA indicators and metrics
Network Value to Transactions Ratio (NVT)
Market Value to Realized Value Ratio (MVRV)
Stock-to-flow model
Examples of Fundamental Analysis tools Baserank
Crypto Fees
Glassnode Studio
Closing thoughts
A Guide to Cryptocurrency Fundamental Analysis
About Lesson

Before we dive into this statistic, we need to understand what realized value means for a crypto asset. Market value, otherwise known as market cap, is simply the total supply of coins multiplied by the current market price. Realized value, on the other hand, discounts for coins lost in inaccessible wallets. 

Coins sat in wallets are instead valued using the market price at the time of their last movement. For example, a Bitcoin lost in a wallet since February 2016 will only be valued at around $400.

To get our MVRV indicator, we simply divide the market cap by the realized cap. If the market cap is much higher than the realized cap, we’ll end up with a relatively high ratio. A ratio over 3.7 suggests a sell-off may occur as traders take their profits due to the coin’s overvaluation. 

This number signifies that the coin may currently be overvalued. You can see this before two large Bitcoin sell-offs in 2014 (MRVR of roughly 6) and 2018 (MRVR of approximately 5). If the value is too low and under 1, the market is undervalued. This situation would be a good point to buy as buying pressure increases and drives up the price.

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