Crypto research demystified: the power of fundamentals in a bear market

Determine the project’s purpose, not just its hype Qualitative analysis is crucial in fundamental analysis, focusing on the project, its team, and its use case, not just its popularity.

Explore the team’s background and funding Investigate the team’s experience, funding model, and token distribution to gain insights into the project’s potential sustainability.

Understand the token economics, not just the token itself Dig deeper into the tokenomics, including incentives, token distribution, and governance mechanisms, to build a comprehensive understanding of the project’s potential long-term viability.

Evaluate decentralized governance and control Assess the decentralized governance structure, including proposals, voting mechanisms, and token concentration, to ensure the project is truly community-driven.

Focus on top-down fundamental analysis Conduct top-down analysis, considering aspects such as sector trends, economic analysis, and financial statements, to uncover valuable insights into the project’s potential and actual performance.

Screen for sustainability and real-world use cases Identify projects with real-world application, solid funding, and a clear development roadmap to increase the chances of long-term viability.

Investigate the project’s auditing and transparency Verify the project’s use of auditors, financial transparency, and regulatory compliance to ensure the project meets high standards of accountability.

Compare sectors and identify trends Study the different sectors in the crypto ecosystem to identify trends, opportunities, and challenges specific to each sector.

Evaluate decentralization and scalability Assess the project’s level of decentralization, potential scalability, and ability to adapt to regulatory changes to ensure its long-term resilience.

Consider the impact of bear market dynamics Understand how project performance changes during bear market, considering factors such as token devaluation, reduced trading volume, and changed user behavior.

Use multiples to evaluate financial performance Employ financial multiples, such as earnings yield, to evaluate the project’s profitability and potential for future growth.

Review sector-specific KPIs for insight Investigate and analyze sector-specific KPIs (such as revenue, expenses, or staking rewards) to provide greater insights into the project’s performance.

Prioritize projects with healthy fundamentals Prioritize investing in projects with solid fundamentals, showing sustainable growth, robust financial health, and a clear path to long-term viability.