The current market sentiment is characterized by growing fear and a decline in market capitalization, creating a rare buying opportunity for investors. According to Santiment, over 85% of altcoins are currently in a "historic buying zone," indicating a significant undervaluation of many cryptocurrencies.
The MVRV ratio, which compares the market capitalization of a cryptocurrency to its realized value, reveals that many altcoins are trading at a significant discount. This discrepancy between market value and realized value can be attributed to speculative trading, which can inflate market capitalization. In contrast, the realized value provides a more accurate assessment of the true value of an asset.
A low MVRV ratio indicates that the market price of a cryptocurrency is undervalued compared to the actual value of the asset. This can be a strong buying signal for sophisticated investors.
Santiment's analysis reveals that over 85% of altcoins are currently in a "historic buying zone," based on the MVRV ratios calculated from the collective returns of wallet holders over different time periods. Santiment notes: "It could be justified to buy while growing fear from the masses after all these market capitalization crashes."
Some of the most undervalued altcoins include Dego Finance (DEGO), Bella Protocol (BEL), and 0x Protocol (ZRX). Here is the complete list of notable altcoins that, according to the latest data, exhibit significant undervaluation.
Undervalued Altcoins:
| Asset | MVRV Ratio (30D) |
Dego Finance (DEGO)
-37,01 %
Bella Protocol (BEL)
-31,69 %
0x Protocol (ZRX)
-29,60 %
Reserve Rights (RSR)
-29,02 %
Dusk (DUSK)
-28,18 %
IDEX (IDEX)
-27,33 %
Frax Share (FXS)
-26,37 %
Gitcoin (AGB)
-26,36 %
Audius (AUDIO)
-26,32 %
ApeCoin (APE)
-26,10 %
SushiSwap (SUSHI)
-24,77 %
AdEx (ADX)
-24,31 %
VIDT DAO (VIDT)
-23,94 %
Ethernity (ERN)
-23,92 %
QuickSwap (QUICK)
-23,80 %
Beta Finance (BETA)
-23,72 %
League of Kingdoms Arena (LOKA)
-23,60 %
Linear Finance (LINA)
-23,43 %
Chromia (CHR)
-23,24 %
Treasure (MAGIC)
-23,21 %
Bitcoin Cash (BCH)
-22,11 %
StormX (STMX)
-22,06 %
StaFi (FIS)
-21,56 %
Synthetix (SNX)
-20,87 %
SuperRare (RARE)
-21,44 %
Ampleforth-Governance-Token (FORTH)
-20,46 %
For investors, this could be a decisive moment to diversify their portfolios or enter new positions with a lower risk profile. However, it is essential to conduct thorough research and consider other market factors and personal investment goals before making financial decisions.
For more Cryptocurrency and Finance content check out our Blog: https://finixyta.com/crypto/the-rise-of-sei-sei-a-revolutionary-cryptocurrency-for-the-modern-era/