Glossary of Fundamental Analysis-banner-imageDictionary

Glossary of Fundamental Analysis


Amount of Cryptocurrency Burned: It indicates the amount of cryptocurrency that is burned and completely out of circulation.

Automated Market Maker (AMM): The system used in decentralized cryptocurrency exchanges where trading transactions are carried out with smart contracts.


Block Rewards: A kind of service fee paid to miners for each correct and valid block they approve.


Central Bank Digital Currency (CBDC): Central Bank Digital Currency is a currency that can be used as a legal tender and a digital representation of a sovereign currency acknowledged by a Central Bank or a Monetary Authority.

Circulating Supply: The amount of supply of cryptocurrency that is available in the market.

Consensus: Each blockchain has a method of working, and these methods are called consensus. The most used consensus mechanisms are Proof of Work and Proof of Stake.

Cumulative Number of Burnings: The data showing the total burnings of cryptocurrency.


Difficulty Level: It specifies the difficulty of creating a new block on the network, which varies according to the number of miners on a network. The higher the processing power in the network, the higher the difficulty level.

DYOR (Do Your Own Research): A frequently used term that means it is healthier to do your own research than hearsay.


Emission Amount: The data showing the number of coins in circulation.


Fan Token: Cryptocurrencies that are created to enable fans to influence the decisions of the clubs they support and to take the relationship between fans and clubs one step further.


Halving: The process of halving the rewards per block. In Bitcoin, it happens approximately once every 4 years.


Lightning Network Capacity: The graphical data showing the capacity of the Lightning Network on the Bitcoin network.

Liquidity: It indicates the ability of a financial asset to be converted into cash in a short time.


Market Value: The value obtained by multiplying the total supply of a cryptocurrency multiplied by the price of the cryptocurrency.

Maximum Supply: The maximum number of cryptocurrencies that can be issued.

Miners' Position Index (MPI): The index showing the total miner outflow.

Mining: The structure that is responsible for validating transactions and gaining certain mining fees by these transactions on blockchains. Miners are one of the most important parts of blockchains.


Network Value to Transactions (NVT) Ratio: It is calculated by dividing the network value by the daily USD transaction volume on the blockchain.

Number of Active Wallets: The data showing the number of active wallet addresses in a cryptocurrency network.

Number of New Addresses: The data showing the number of new addresses in a cryptocurrency network.

Number of Transactions in the Network: The data showing the number and activity of transactions in a cryptocurrency network.


Platform Token: The tokens offering opportunities such as voting rights and locking on platforms and are generally available on centralized or decentralized finance platforms.

Presales: The sale of a cryptocurrency before the issuance of the cryptocurrency. Usually, a limited amount of cryptocurrency is put on sale at this stage.

Private Sales: A sales round before completing the issuance process of a cryptocurrency that certain individuals can participate in privately.


Rate of Activity in the Total Supply: The data showing the activity rate in the total supply of a cryptocurrency. 5, 3, or 1-year calculations can be made as well as 90 or 7-day short-term calculations.

Rate of Supply in Profit: A profit is made when the current price of a cryptocurrency is higher than the price of it the last time it moved on the blockchain.

Return on Equity (ROE): The return on equity ratio.

Return on Investment (ROI): The total return on investment.


Stablecoins: Stable cryptocurrencies indexed to a value of another asset. Stablecoins can be indexed to different types of assets such as SD Coin (USDC), Paxos (PAX), and TrueUSD (TUSD), and they are tokens backed 1 to 1 by money held in bank accounts.

Short Sale: It means borrowing and selling a financial asset considering that the value of it will decrease.


Total Supply: It shows the available supply of a cryptocurrency. It is often confused with the Maximum Supply data, which shows different data. The Total Supply data shows the amount of cryptocurrencies issued but not in circulation yet. On the other hand, the Maximum Supply data includes the amount of cryptocurrencies not issued but will be issued in the future.

Transfer Number: The metric showing the number of transactions made on a network.


Whale: An individual with a lot of crypto assets. It is thought that investors called whales direct the market with their assets.