To analyze a cryptocurrency project using economics, start by evaluating its supply and demand dynamics. Examine the token’s issuance model—fixed supply (like Bitcoin) creates scarcity, potentially driving value, while unlimited issuance may dilute it. Assess utility: does the token serve a clear purpose within its ecosystem, like governance or transaction fees? High utility can boost demand. Next, consider market structure—decentralized projects with strong network effects (e.g., Ethereum) benefit from adoption growth, while centralized ones face risks of manipulation. Analyze incentives: are miners, validators, or users rewarded in ways that align with long-term stability? Finally, factor in external forces—regulatory pressures or macroeconomic trends (e.g., inflation) can impact viability. Combining these—supply scarcity, demand drivers, network effects, and incentives—offers a robust economic framework to assess a crypto project’s potential.