Our weekly crypto derivatives analytics report delves into macro events; the current state of crypto and trading signals from spot trading volume; and futures, options and perpetual contracts.

Since hitting a local bottom on Mar 11, 2025, crypto asset prices have experienced a two-week rise, following a recovery above $87K for BTC and $2K for ETH. XRP remains stable, but BTC and ETH are still below their levels from the start of the year. SOL is also down for the year, despite reaching an all-time high (ATH) in January 2025 that coincided with the 

. While derivatives markets aren't bullish yet, they've reversed much of the bearish sentiment, although demand persists for puts on BTC and ETH.

Please check out the report’s highlights.

For most of this past week, perpetual open interest remained flat, reflecting a cautious risk-off sentiment across asset classes. This changed briefly with a partial spot recovery that allowed BTC to reach $88K (a two-week high), which led to slight increases in perp open interest and trade volume primarily driven by BTC. However, trade volumes are still significantly lower than at the start of the month when US president Donald Trump proposed a crypto strategic reserve for the big four tokens.

Negative funding rates point to bearish sentiment

Despite a week of lower realized volatility and positive performance among major crypto assets, funding rates for BTC and ETH contracts have remained mostly negative, indicating that short positions are paying long positions. This reflects a bearish sentiment not present in large-cap altcoins, whose funding rates have fluctuated between positive and negative without a clear directional trend.

Implied volatility levels have dropped by 3–5 points from last week, with 30-day options trading at their lowest level since the year's start. Realized volatility is nearing the 30% low established in late February. As is typical during periods of low volatility, options market activity has decreased, with open interest remaining low and balanced between puts and calls despite about $40M in weekly expirations.

Advanced

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Bybit X Block Scholes crypto derivatives analytics report (Mar 27, 2025): Cautious sentiment prevails despite price recovery

Learn about Mubarak (MUBARAK), the BNB Chain meme coin fueled by community hype and speculation over potential listings.

Mubarak (MUBARAK) is a community-driven meme coin on 

 that’s quickly gaining popularity, due to strategic community engagement and cultural branding targeted toward Middle Eastern investors. This guide explores Mubarak’s unique features, tokenomics, recent market performance and trading options.

Mubarak (MUBARAK) is a community-driven meme cryptocurrency built on BNB Chain. It was launched on the 

 Inspired by an Abu Dhabi company’s $2 billion investment in Binance, MUBARAK — which means “blessed” in Arabic — carries a unique appeal for Middle Eastern crypto markets. This targeted cultural approach distinguishes MUBARAK from other 

, giving it particular appeal in regions with growing crypto enthusiasm.

Shortly after the coin’s launch, its community quickly took control over it, guided prominently by the influential persona 

 on social media platform X. Users can also create Mubarak-themed avatars on the website, giving influential figures a dash of Middle-Eastern charm — from CZ and Portuguese soccer star Cristiano Ronaldo to beloved meme coin mascots 

. The meme coin quickly attracted attention, due to its engaging branding and strategic community management, amassing a total of 12,400 followers in just two weeks. 

What’s the source of MUBARAK’s popularity? 

MUBARAK stands out from typical meme coins, thanks to several major Binance-related events accelerating its market visibility. 

On Mar 12, 2025, Abu Dhabi investment company MGX made history by investing $2 billion in Binance. This represented the largest single investment in the whole of cryptocurrency history, signaling strong confidence in the industry. It was also a pivotal moment that firmly established the Middle East as a key player in the crypto space. Right after MGX’s mind-blowing investment, CZ tweeted several Mubarak-related posts, leading to the eventual birth of MUBARAK the very next day.

Binance Alpha, a dedicated platform for emerging and promising BNB Chain tokens, promptly listed MUBARAK on Mar 15, 2025, further validating the meme coin's potential. This integration enhanced MUBARAK's credibility, trust and market exposure, attracting a broader investor base beyond that of typical meme coin enthusiasts.

The second significant event that led to the greatest boost in its price and market cap took place when CZ personally bought 1 BNB worth of MUBARAK (around $600 at the time of purchase) on Mar 17, 2025. Both its listing and CZ’s purchase of the coin within a matter of two days pushed the coin to an all-time high (ATH) of $0.21 by Mar 18, 2025. While MUBARAK rapidly declined from its ATH to $0.13 just one day later, CZ’s cryptic endorsement for the coin briefly ignited more community excitement. 

On Mar 19, 2025, CZ sparked speculation in the Mubarak community by changing his X profile picture to feature himself wearing traditional Arab attire. The crypto community widely interpreted CZ’s subtle gesture as a potential endorsement or “hint” toward future Binance involvement. This led to a rapid increase in Mubarak's price (over 30%) within the same day as it reached $0.165 and briefly touched a $166 million market cap.

Mubarak’s straightforward and transparent tokenomics (below) are designed to foster investor confidence and community engagement.

Mubarak's simple token structure and availability on a reputable 

 (DEX) enhance accessibility, providing investors easy entry and liquidity options without relying solely on 

As of Mar 28, 2025, MUBARAK is priced at $0.096, reflecting a 55.3% decrease from its ATH of $0.21 on Mar 18, 2025, and a 237% increase from its all-time low (ATL) of $0.028 on Mar 16, 2025. It has a current market cap of $95 million and a 24-hour trading volume of $306 million.

MUBARAK’s price surged over 480% from the time of its launch, primarily due to strategic visibility from its Binance Alpha integration, speculative interest following CZ’s interactions and growing enthusiasm for meme coins in the crypto market. At its peak, MUBARAK achieved a market cap of approximately $166 million, reflecting significant investor confidence and demand.

Mubarak (MUBARAK) has quickly established itself as an influential meme coin in the crypto market, boosted significantly by strategic integrations like Binance Alpha, and speculative attention fueled by former Binance CEO Changpeng Zhao’s interactions. Its unique cultural branding, particularly appealing to Middle Eastern crypto circles, has further amplified its market visibility and adoption. However, investors must approach meme coins with caution due to these assets’ speculative nature, which often leads to considerable volatility and potential risks.

If you're interested in participating in MUBARAK’s growth story, you can trade 

, where you can participate in high-risk/high-reward Perpetual contract trading with up to 12.5x leverage.

Beginner

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Mubarak (MUBARAK): Arabic-themed BNB Chain meme coin

Margin Staked SOL is a Bybit product that allows you to earn SOL staking rewards and utilize leverage of up to 2x to amplify your earnings.

 can be a great way to earn yield in crypto, and 

 (SOL) is one of the most popular blockchain platforms for doing so. However, setting up and running a Solana validator node is technically complex. Additionally, financial requirements for Solana validators are high. While the official minimum stake is just 0.01 SOL (around $1.33), in reality, a typical Solana validator needs 

 staked just to break even — an investment of about $6.66 million (as of Mar 28, 2025).

Most crypto users who would like to benefit from staking rewards on Solana simply don’t have that kind of capital. And many don’t want the hassle of setting up a full validator node.

Back in September 2024, Bybit introduced 

 (LST) that lets you earn Solana staking rewards with minimal investment, and no need to manage a validator node.

bbSOL has been a major success, allowing Bybit users to earn staking rewards without technical or financial barriers. Now, Bybit is taking it a step further with Margin Staked SOL — a new Solana staking product that utilizes bbSOL and offers leveraged borrowing to amplify the rewards.

 is a Bybit leveraged liquid staking product that’s designed to help you earn Solana staking rewards with minimal hassle.

 Using it, you can invest your SOL and Bybit will allocate the funds to Solana blockchain validators, allowing you to earn staking rewards. When you stake through Margin Staked SOL, you receive bbSOL, an LST that serves as a deposit certificate and accrues staking rewards. Unlike standard bbSOL staking, Margin Staked SOL allows you to use 

For example, if you have 100 SOL and opt for 2x leverage, the total amount committed to Solana staking will be 300 SOL — your 100 SOL principal plus the borrowed 200 SOL. You’ll pay interest (which is variable and calculated hourly) on the borrowed amount.

Bybit allocates your total staking amount through 

 (CLOUD), Solana's leading liquid staking solution. Sanctum's 

 distributes staked funds across multiple validators to optimize the total yield.

The key advantage of Margin Staked SOL is its capacity to amplify staking rewards through leverage. In addition, you don't need to handle the technical complexities of running a Solana validator. The minimum investment required is just 0.5 SOL (around $70), drastically lower than the millions of dollars needed to run a profitable validator node in Solana's highly competitive staking ecosystem.

Upon committing your funds to Margin Staked SOL, you’ll receive the bbSOL LST. All staking rewards accrue in this asset, and you can redeem your investment at any time by exchanging bbSOL for your original SOL. After deducting interest on the borrowed funds, you’ll receive your SOL, along with all the accrued rewards. bbSOL accumulates rewards every time a Solana epoch is completed, typically taking 2–3 days.

As an LST, bbSOL normally allows you to keep your original SOL locked while using the liquid token across the Solana 

 (DeFi) ecosystem, and within Bybit products like On-Chain Earn, Bybit Savings and Crypto Loans. However, when bbSOL is issued via Margin Staked SOL, it must remain locked, and cannot be used in other Bybit or DeFi products. It acts solely as your deposit confirmation, and continues accruing rewards until you withdraw from Solana staking via Margin Staked SOL.

Interest on the borrowed funds within Margin Staked SOL is calculated hourly, with any duration under one hour rounded up to a full hour. The interest rate is variable, and updates every hour. You can check the current rate in your account under 

Rewards in Margin Staked SOL aren’t distributed immediately. Instead, they accumulate in your bbSOL, and can be redeemed at any time alongside your SOL principal investment. Bybit provides two redemption options for bbSOL:

If your PnL position declines beyond a certain level during staking, Bybit will send you a margin call notification via email, prompting you to either redeem your investment or contribute more SOL. If your PnL drops even further, an automatic stop-loss transaction will be triggered to redeem your funds and cover the loan and accrued interest. These measures are designed to protect you from unexpected losses.

Besides Margin Staked SOL, Bybit also offers another product for those who would like to earn yields from hassle-free decentralized staking: 

. There are three key differences between the two products: 

1) Unlike On-Chain Earn, Margin Staked SOL allows you to use leverage, amplifying your potential returns and risks. 

2) On-Chain Earn creates opportunities for staking on several blockchains, while Margin Staked SOL is a solution that’s designed exclusively for Solana staking.

3) Staked assets in On-Chain Earn can be withdrawn and utilized in their respective blockchain ecosystems, whereas the bbSOL from Margin Staked SOL is locked solely for yield generation, and cannot be used elsewhere. 

How to get started with Margin Staked SOL

Here’s how to get started with staking your SOL.

: In your account’s navigation pane, click on 

: On the left side, you’ll see the APR chart for the product, containing information on the Net APR; the trend over the past 1,7 or 30 days; and the highest and lowest Net APRs over a selected time period.

: On the right side, you can set options for your Margin Staked SOL (the leverage ratio and the SOL amount to transfer from your main account). You’ll see the amount of automatically calculated bbSOL you’ll receive, total borrowed amount and estimated daily yield.

to view a detailed breakdown of your bbSOL holdings. Then, click on either

: On the confirmation pop-up window, enter the amount of bbSOL you wish to redeem, or click on 

to redeem your full balance. Review the details, then click on

 to proceed, depending upon your earlier choice. 

to finalize your redemption on the redemption confirmation pop-up. Your redeemed SOL will be sent to your 

Until Apr 4, 2025, 10AM UTC, you can also take advantage of Bybit’s 

 campaign that’s dedicated to the Margin Staked SOL product. This campaign lets you earn up to 10 Lucky Draw tickets, each guaranteeing at least a 1 USDT 

, with a chance to win up to 100 USDT. In order to participate in the campaign, you must register for the event and complete a series of tasks as follows:

Bybit’s Margin Staked SOL allows you to earn Solana staking rewards without the hassle of setting up and running a validator node — all via your account’s easy-to-use interface. The leverage option is also a great way to multiply your rewards. Moreover, the minimum investment is minuscule, especially compared to running a Solana validator, and there are two easy redemption options — and all of these benefits without needing to interact with the underlying Solana blockchain!

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Bybit Margin Staked SOL: Unlock higher yields with less effort

Animoca Brands has partnered with Soneium, Sony’s Ethereum Layer 2 blockchain, to develop Moca Network’s identity layer and launch anime initiatives on Soneium.

The S&P 500 fell 0.33% as tariffs and inflation concerns weighed on markets, with energy, tech, and communication sectors leading losses. Gold hit a record $3,059 as Trump’s tariffs fueled trade war fears, boosting safe-haven demand. The Coindesk Indices, which tracks the broader crypto market, are down by 1.01%, with Bitcoin up by 0.55% and Ether down by 0.18% in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is CARV, up 9.2%, as it expands globally and redefines data ownership.

CARV (CARV), founded in 2022, is a modular data layer empowering users to control their data, enhancing privacy for gaming and AI systems through its CARV Protocol and ecosystem platforms. 

, advancing AI, gaming, and data ownership with its SVM Chain, which ensures privacy, scalability, and interoperability between Ethereum and Solana. With listings on Tokocrypto and Mercado Bitcoin, CARV is targeting Southeast Asia and Latin America, where users can better control and monetize their data. The $CARV token powers governance, gas fees, and incentives, fostering a user-owned data economy. Strategic partnerships with Kite AI and ARPA enhance AI intelligence, verifiable randomness, and blockchain security.

Check out the latest prices, charts, and data of 

, Sony’s Ethereum Layer 2 blockchain, to develop Moca Network’s identity layer and launch anime initiatives on Soneium. Moca Network’s AIR SDK will integrate into Soneium, enabling decentralized identity (DID) and reputation features, starting with San FranTokyo’s Anime ID. This collaboration aims to onboard anime fans to blockchain-powered experiences and enhance engagement across anime, gaming, and Web3. Sony’s Soneium, developed by Sony Block Solutions Labs and Startale Group, seeks to merge creativity and technology, while Animoca Brands’ partnership strengthens the digital identity infrastructure for an interconnected Web3 ecosystem.

Yesterday, BTC spot ETFs saw $85M in inflows, all from non-GBTC funds.

, allowing users to earn Fragments through Galxe and Zealy quests, potentially qualifying for an airdrop. Participants must complete quests, connect wallets, and use a referral code. Points update weekly, and the program may be limited in duration.

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Animoca Brands and Sony’s Soneium partner to enhance digital identity and anime experiences in Web3

Investing

Crypto Investment Guide

Crypto

Crypto fundamental analysis is the first step to formulating a successful trading plan by assessing the asset's intrinsic value. Here's what you must know.

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Investing in cryptocurrencies requires careful research and evaluation of all available metrics. Most projects provide ample information about the purpose of the cryptocurrency, 

, the team behind the project, and its development to date. Using a combination of quantitative and qualitative factors, you can derive a view of cryptos using fundamental analysis. 

A myth among new entrants is that cryptocurrencies cannot be valuated based on fundamental analysis due to high market volatility. However, even though the asset may be subject to the whims of global traders, one can still form an educated opinion on its value.

Understanding fundamental analysis helps you evaluate whether a crypto is worth buying or selling. In this article, we’ll show you how to analyze cryptocurrency using fundamental analysis, including the key factors to consider, and look at how cryptocurrency analysis is different from traditional asset analysis. 

: While a cryptocurrency is a digital token issued by a blockchain project, for this article’s purposes, the terms cryptocurrency, project and token are used interchangeably.

 determines the intrinsic value of an asset, or in other words an objective measure of its worth. Evaluating underlying information about a cryptocurrency project provides guidance on whether it’s undervalued or overvalued as an asset. A cryptocurrency that’s undervalued may present a buying opportunity, whereas one that’s overvalued may indicate it’s time to take profits.

Crypto markets are notoriously volatile. Even established currencies like 

 are subject to sudden fluctuation. Investing in newer cryptocurrencies comes with significant risk unless you understand what you’re investing in. 

Performing fundamental analysis enables non-technical investors and seasoned traders alike to trade market movements with confidence. Armed with fundamental analysis, traders can create informed strategies with better odds of profitability.

Fundamental analysis is distinct from technical analysis, which is typically used by traders and investors who have an interest in forecasting a cryptocurrency’s market direction through the use of 

How Is Crypto Fundamental Analysis Different?

, which is often considered the bible for securities valuation. To this day, investors analyze financial assets using the metrics explained in this classic book. For example, when evaluating stocks quantitatively, you can use earnings per share (EPS) or the price-to-earnings ratio (PE ratio) to determine the intrinsic value of a share.

So far, cryptocurrency isn’t subject to international regulation when it comes to reporting requirements, unlike publicly listed companies that often have to issue quarterly reports using recognized accounting standards. Traditional business metrics, such as liquidity ratios that look at the solvency of conventional companies, are thus irrelevant in the cryptocurrency market. As a result, crypto markets can’t be assessed using the same traditional fundamental analysis indicators used for traditional businesses.

Within crypto markets, all transactions can be publicly “audited” on a blockchain, and the founding team must keep the community informed of their road map. Conceptually, though, investors still need to develop insights into each underlying project. Hence, a different framework has to be set up, with metrics utterly distinct from those used for analyzing traditional markets.

Factors to Consider When Analyzing Crypto Fundamentally

The main goal of cryptocurrency fundamental analysis is to reduce investor risk and evaluate the profit potential of the asset. 

Fundamental analysis can be applied in three broad categories.

 is a valuable resource, providing users with on-chain metrics, or data provided by the blockchain. However, pulling information manually from raw blockchain data can drain time and resources. Fortunately, a range of 

 (APIs) provide tools to empower investment decisions. Leading crypto exchanges have developed reporting tools that provide an abundance of actionable information, such as the number of active users, total transactions and transaction value.

The most fundamental metrics to a cryptocurrency’s fundamental analysis are 

, number of active addresses and transaction count, as well as transaction values and fees. 

Let’s take a closer look at how this data grants trading insights.

Blockchain’s architecture plays a significant role in securing a network, and diving into its data proves to be valuable for cryptocurrency fundamental analysis.

Bitcoin is an example of a cryptocurrency that runs on a 

 (PoW) consensus. PoW blockchains require crypto miners to solve computational puzzles that verify each transaction while preventing 

 control of the blockchain. Should there be a 51% attack, the controlling entity (the network attacker) would have the power to alter or halt other transactions that don’t belong to them, or to 

Hash rate is viewed by many crypto investors as an indicator of the health of the cryptocurrency in question. The higher the hash rate, the more miners are incentivized to mine for profits and the greater the security of the network. Calculating a personal hash rate can also help miners determine their own profitability. 

However, when hash rate begins to decline, miners might begin to find a cryptocurrency unprofitable, leading to “miner capitulation,” which often takes place when markets spiral lower, creating pressure for miners to sell off their hardware. Lower hash rates indicate a loss of interest on the part of investors. 

A cryptocurrency’s current price, transaction volume and fees paid are examples of variables that might affect a mining operation's overall expenses. Direct 

, like electricity and computing power, must also be taken into account.

While hash rate is a valid indicator of the health of PoW blockchains, for 

 (PoS) blockchains (such as Ethereum) the amount of crypto staked is the metric to look at.

 for block validations. Hence, a higher number of staked tokens translates to greater blockchain security.

Another approach is to total the number of unique addresses within predefined periods, and then evaluate the results. 

This metric gives investors a good overview as to whether a cryptocurrency is being consistently used.

A network's activity can be measured by its transaction count. Investors may observe how activity changes over time by plotting the number of transactions for predetermined intervals (or by using 

Please note that this metric needs to be used with caution. We cannot rule out that only one party is transferring money between their own wallets to artificially inflate the on-chain activity, as we’re unable to ascertain the identity of certain active addresses.

Transaction value is a metric that tells investors how much value has been transacted over a certain period of time. For example, if there were five Bitcoin transactions of $250 each, all on the same day, the daily transaction value would be $1,250.

A consistently high transaction value indicates that the cryptocurrency is in steady circulation, while comparisons reveal data concerning potential future market movements.

Within a particular vertical, for example 

, we might see transaction value reducing for one cryptocurrency, but increasing for another. This is a sign that the market is shifting its attention elsewhere, and could signal a potential increase in the cryptocurrency’s price given the demand and activity on it.

Fees reflect the demand on a given blockchain, or how many transactions are paying to be added to the blockchain as quickly as possible. Paid fees can be thought of as bids at an auction: users have to compete with each other to have their transactions executed and included on the blockchain. Those who pay higher fees have their transactions confirmed sooner. Hence, higher fees typically indicate a greater demand from users for their transactions to be included on the blockchain.

Ethereum’s gas is an example of fees paid, but every crypto has its own transaction fees. 

Fees can also give an idea of how secure a cryptocurrency network is. PoW blockchains typically provide a block reward to miners, who help process transactions and maintain the security of a chain. These block rewards are usually made up of the transaction fees. With cryptocurrencies that have a decreasing emission schedule, such as Bitcoin, block rewards are reduced periodically, in an event known as 

When block rewards are reduced, it makes sense to increase transaction fees in order to help miners maintain their profitability. Should the rate of increase in transaction fees not catch up with the reduction in rewards, miners may begin to operate at a loss and choose to drop off the network. This could reduce the security of the cryptocurrency network.

Financial metrics of a cryptocurrency gives a good overview of how well the cryptocurrency might be performing as compared to the past, and also gives insights as to its potential future growth.

Market capitalization is the representation of a network’s value. It can be calculated by multiplying the current price by the supply of the cryptocurrency in circulation. However, 

 can offer misleading valuations if you fail to factor in other metrics, such as liquidity. 

In general, market cap can be used to approximate the growth potential of a cryptocurrency. Some investors believe that cryptocurrencies with lower market cap have greater opportunity for growth compared to those with higher market cap, while others deduce that larger market cap translates to a stronger network effect and infrastructure, which will attract the market’s demand.

Even though forgotten currency, lost wallets and irretrievable keys mean that we’ll never really know precisely how many coins of a given crypto are in circulation, market capitalization offers an approximation for a coin’s network value.

Liquidity is a measure of how easy it is to buy and sell a cryptocurrency. If a cryptocurrency can be bought or sold quickly without drastically altering its market value, its liquidity is considered strong. A liquid cryptocurrency has many buyers and sellers’ orders waiting to be filled. This, in turn, narrows the 

, which is a good measure of liquidity. 

With illiquid markets, the problem faced by investors is an inability to sell the cryptocurrency at a “fair” price. This is because there are hardly any buyers willing to make the trade, which will result in two choices for the investors: they can either lower the price at which they’ll sell the cryptocurrency, or wait for its liquidity to increase. However, note that 

 the cryptocurrency might reduce return on investment over the long term if the price doesn’t increase.

Trading volume is a useful indicator of a cryptocurrency’s ability to sustain momentum. It shows how many units of the cryptocurrency have changed hands over a specific period. If an upward trend in value is backed by a high trading volume, it’s likely that the crypto’s price will continue to increase. Conversely, price fluctuations without significant trading volume may just be blips on the radar. 

 of a cryptocurrency refers to the total number of units in active supply that are publicly accessible. Different from the total supply or the maximum potential supply, the circulating supply isn’t static and can change over time, since cryptocurrencies can be 

The emission schedule is something investors can look at in order to make informed decisions. Some cryptocurrencies are deflationary, with supplies that decrease over time. This is attractive to some investors, as they believe that the reduced supply coupled with increased demand from the market will lead to a price increase. 

On the other hand, cryptocurrencies that may be highly inflationary, leading to a high circulating supply, might make investors wary because the excessive supply could lead to a decrease in price.

Project metrics are used to take a qualitative approach to evaluating the performance of a cryptocurrency. They focus on internal and external factors, such as the purpose of the cryptocurrency and how the project operates.

Project websites typically include a list of their team members, whose collective experience can shed light on whether the group possesses the necessary expertise to see the project through to completion. 

Some of the things that investors may seek from a project’s team include the following:

Background checks can be conducted through networking platforms, such as LinkedIn.

Should a team insist on remaining anonymous, investors have to exercise discretion as to whether they’re deemed sufficiently trustworthy. It’s extremely difficult to track an anonymous team in terms of their developments and background.

The white paper is a technical document that outlines the purpose and operation of a project. It’s the most important of the project’s documents, and should ideally contain the following information:

Examine the white paper with a good dose of skepticism, and look out for third-party reviews about the project that can be shared through platforms such as Discord or Twitter.

Identifying a project’s competitors within its vertical is critical to evaluating the project’s potential. A project may initially seem to be appealing, but this might not be the case when its’ compared to projects of competitors who might have a better team, differentiating product features or higher level of community engagement.

Most cryptocurrency projects have a road map for the future, with a timeline for test nets, releases and newly planned features. The road map should offer a clear outline of future developments. Investors can use it to measure the achievement of milestones, and to determine whether the team is performing according to their plans.

 is the economics of token supply and demand, which drive the value and price of a cryptocurrency. The higher the demand relative to supply, the higher the price. By looking at the token distribution, investors may be able to identify any potential risks. For instance, if only a few people own the vast majority of the supply, they could eventually manipulate the market by dumping all their holdings, causing the crypto’s price to crash.

Tokenomics also includes the incentive structure used to motivate behavior on a network. For example, one prominent tokenomic model that’s been gaining attention is the vote escrow model, in which rewards are used to incentivize crypto users who lock up their cryptocurrency for a period of time. This translates to reduced circulating supply, which plays a part in increasing prices.

The vesting period of a cryptocurrency’s supply must be taken into account. A short vesting period for early investors could result in a situation where they dump a large number of tokens onto the market for profit, leading to the cryptocurrency’s price declining over time.

The utility of a token is something that investors should pay attention to. Some projects create tokens which don’t have much utility. In such cases, the market demand for the token will be low, given that it doesn’t serve a practical purpose. Without market demand for the token, its price is less likely to appreciate.

The team’s development activity can shed light as to whether they’re actively working on the project and are hitting their milestones. Check to see how many contributors there are, and how much activity there is on the project's public GitHub, if it has one. A cryptocurrency whose repository hasn't been updated in two years, or one that gives inconsistent updates, may not be as appealing as one whose development has been consistent.

Quantitative analysis is also a great method for analyzing a cryptocurrency. However, it’s not as helpful in determining its risks, or for aspects that aren’t measurable by a number

Other factors that can come into play in terms of fundamental analysis include government policies, social politics and user behavior.

There have been stricter regulations around cryptocurrencies over the past year amid some of the biggest black swan events, such as the 

 (TORN). This has caused the prices of XRP and TORN to vary significantly based on the ongoing regulatory changes.

As the U.S. government has taken a more active role in clamping down on certain cryptocurrency verticals, an investor will have to evaluate whether the cryptocurrency they wish to invest in might be affected by any negative regulations.

The Covid-19 pandemic gave investors a taste of a truly global crisis and its impact on financial markets. As the pandemic unfolded, all assets, including cryptocurrencies, sold off. 

. Investors took a risk-averse attitude and fled from speculative assets.

In response to this crisis, governments around the world passed trillions of dollars in stimulus packages. As central banks flooded the system with 

, investors turned to cryptocurrencies as a store of value and an inflation hedge. 

Investor behavior is one of the most difficult factors to evaluate. However, recent times have seen users investing based on key opinion leaders (KOLs), typically individuals with a large following on social media platforms including Twitter, Instagram and TikTok. 

How to Analyze a Cryptocurrency Using Fundamental Analysis

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