# 2. Fundamental trading Fundamental approaches focus on exploiting market inefficiencies by identifying price discrepancies between related assets. For example, consider two Layer 1 blockchains with different market cap valuations. If Blockchain A has more users, higher total value locked (TVL), greater trading volume, and broader adoption than Blockchain B, yet Blockchain B has a higher market cap, this discrepancy could present an opportunity. A pair trade in this scenario would involve betting on the growth of Blockchain A (long leg) relative to Blockchain B (short leg). This approach relies heavily on data analysis and metrics to identify undervalued or overvalued assets within a similar category, making it ideal for traders who prefer a thesis-driven approach. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.pearprotocol.io/2.-fundamental-trading.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.