A recent analysis has suggested that several major altcoins, including $XRP, Cardano’s $ADA, and the meme-inspired cryptocurrency Shiba Inu ($SHIB) are potentially undervalued, which would signal an opportunity for a recovery over the summer.
According to analysis conducted by the popular cryptocurrency analytics firm Santiment, these three popular cryptocurrencies could be undervalued, based on their realized capitalizations, a valuation metric that considers market value against the price at which each coin last moved.
The platform’s conclusions are drawn from short, mid, and long-term realized capitalizations, hinting at the possibility of a market reevaluation that could favor these altcoins.
The list of potentially undervalued altcoins also includes Dogecoin ($DOGE), Polygon ($MATIC), Uniswap ($UNI) and Chainlink ($LINK). In contrast, the report points out that cryptocurrencies like Bitcoin ($BTC), Ethereum ($ETH), and $BNB might be overvalued according to the MVRV Z-score.
This metric, which compares Market Value to Realized Value, is widely used in the cryptocurrency market to assess the valuation of specific cryptocurrencies and the overall market.
Notably, the price of XRP has recently been outperforming, with digital asset investment products focusing on the cryptocurrency seeing significant inflows this past week, even as crypto investment products saw outflows totaling $62 million during the same period.
Inflows are surging at a time in which the cryptocurrency has been adding billions to its market cap over a number of factors.
These factors include XRP seeing its second and third-largest address activity spikes of all time, in the span of just two days. The event could potentially signify upcoming substantial changes in the network’s market position.
The number of addresses interacting with the network recently ballooned to an unprecedented 490,000, according to on-chain analytics firm Santiment. The 490,000 figure isn’t far behind the largest ever recorded spike on March 18th, which triggered a remarkable 45% surge in XRP’s price over the following ten days.
Cardano, on the other hand, has been seeing its decentralized finance’s ecosystem grow in adoption, with total value locked regularly growing and decentralized exchanges seeing record transaction volumes.
Meanwhile, the Shiba Inu community has been sticking to its token burning strategy, while the meme-inspired cryptocurrency recently rebounded from a recent security rating drop.
Featured image via Unsplash.
