XRP, Cardano (ADA) and Shiba Inu (SHIB) are among the most undervalued assets, according to a Santiment report which predicts a looming recovery for these assets.
Cryptocurrency analysis platform Santiment has raised a fascinating possibility regarding the undervaluation of several major altcoins. In a recent tweet, Santiment highlighted XRP, Cardano (ADA), and Shiba Inu (SHIB) as potential candidates for growth, with market capitalizations surpassing their realized capitalizations.
📊 Several of the largest #altcoins show undervaluation when combining short, mid, and long term realized capitalizations. Market caps are above realized caps for $XRP, $ADA, $DOGE, $MATIC, $SHIB, $UNI, & $LINK, hinting many may make up ground this summer. https://t.co/3wLIFZ8B90 pic.twitter.com/WMzy4imOO9
— Santiment (@santimentfeed) June 4, 2023
In addition to XRP, ADA, and SHIB, Santiment’s analysis includes Dogecoin (DOGE), Polygon (MATIC), Uniswap (UNI), and Chainlink (LINK) on its list of underappreciated altcoins. By considering short, mid, and long-term realized capitalizations, Santiment suggests that these cryptocurrencies may make significant strides during the upcoming summer months.
In contrast, citing the MVRV Z-score of the concerned assets, the analytics resource emphasized that cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and BNB are overvalued. The MVRV (Market Value to Realized Value) Z-score is a metric used in the cryptocurrency market to assess the valuation of a specific cryptocurrency or the overall market.
The undervalued assets have exhibited varying trends over the past week. XRP witnessed an impressive growth of 11.6% within that timeframe, currently trading for $0.5338. Updates from the Ripple vs. SEC case have contributed to the XRP’s buzz and surge. Moreover, market watchers continue to forecast an impending rally for the asset.
Meanwhile, ADA experienced a modest decline of 1.98% over the week, currently priced at $0.37. SHIB is also facing declines in the past seven days, with a 3.39% drop within the timeframe. The canine-themed asset is currently changing hands at $0.00000856.
The underwhelming performance of these leading cryptocurrencies is the predominant factor that contributes to their undervaluation, thus presenting a potential opportunity for investors seeking alternative investment avenues.
The Santiment analysis prompts investors to reevaluate their altcoin investment strategies in light of these findings. However, it’s crucial to note that while Santiment’s insights are valuable, they do not guarantee immediate or definite outcomes for these altcoins. As with any investment, thorough research, analysis, and caution are essential.