The Iconist is introducing a nine-part series dedicated to fundamental analysis of ICON, exploring how ICON is a fundamentally strong project and how it can be improved.
Fundamental analysis of a blockchain project such as ICON provides a lot of information in terms of strength, how it compares to competitors, the value of ICX and its potential in terms of future growth. This analysis can prove useful to all ICON stakeholders, including the development team, investors, partners and traders.
A well-researched fundamental analysis of ICON will further attract stakeholders.
Each article in this series will focus on a different element of fundamental analysis, including ICON use cases, team record, ICON’s decentralized governance, technological prowess, market entry and opportunities, progress, competitors and financial stability.
What is fundamental analysis?
Fundamental analysis looks beyond chart patterns and history to determine whether a project has long term potential. This requires researching every aspect of the project’s ecosystem, including technology, competitors and business development.
Business metrics and indicators are used to determine the real value of a project or asset, and to compare the investments to other competitors in the market. Fundamental analysis traces a project’s value to its source, allowing you to spot overvalued or undervalued assets.
Who uses fundamental analysis?
Potential partners, investors and traders can use fundamental analysis to determine whether a project or business is a good choice to work with or invest in, and how much value it has. Current team members and partners can also use fundamental analysis to work out what can be improved and set realistic long-term goals for their project.
Tools of fundamental analysis
Fundamental analysis tools show useful data in an efficient way, making analyses between different competitors easier. Here are some examples below.
- Crypto Fees: This site displays each network’s fees over the past 24 hours or seven days, a useful metric in determining a blockchain network’s traffic or usage.
- Glassnode Studio: This dashboard displays a range of blockchain metrics, data and insights.
- Baserank: This research platform for crypto assets gathers information and reviews from analysts and investors, giving an overall score from 0 to 100.
Why is fundamental analysis important?
Fundamental analysis is crucial in determining whether a project has long-term potential or investment potential, weeding out “pump and dump” schemes and scams.
The aim of fundamental analysis is to generate an expected price and compare it with the current price by examining external factors and broader conditions that may affect the network, providing a deeper understanding of a project.
