Dogecoin, Shiba Inu and Seven Additional Crypto Assets Are Massively Undervalued Based on One Metric: Santiment

Analytics platform Santiment says that the two largest meme coins by market cap and seven other crypto assets currently pose a relatively lower risk for investors.

Santiment says that based on the market-value-to-realized-value (MVRV) Z-score, Dogecoin (DOGE) and Shiba Inu (SHIB) are undervalued and lower risk.

Dogecoin is trading at $0.86 at time of writing while Shiba Inu is changing hands at $0.000012.

The MVRV Z-score is used to determine whether an asset is undervalued or overvalued. When the MVRV Z-score is in negative territory, implies that an asset is undervalued and vice versa. Shiba Inu currently has an MVRV Z-score of -1.88 while Dogecoin’s is -0.162, according to Santiment.

Other crypto assets that Santiment says are undervalued are Bitcoin (BTC), Ethereum (ETH), XRP, Cardano (ADA), layer-2 solution Polygon (MATIC), decentralized exchange Uniswap (UNI) and blockchain oracle Chainlink (LINK).

On the other hand, Santiment says that Binance Coin (BNB), with an MVRV Z-score of 0.87, is overvalued.

“According to MVRV Z-Score, which identifies overvalued and undervalued assets based on short and long-term returns, top caps are in the following categories:

Overvalued: BNB

Undervalued: BTC, ETH, XRP, ADA, DOGE, MATIC, SHIB, UNI, LINK.”

Turning to Bitcoin, Santiment says that the flagship crypto asset’s positive returns year-to-date have resulted in the crowd optimism levels in the markets rising to a six-month high.

“Traders are treating Bitcoin’s signs of life as a signal that a bigger breakout may be looming soon. The rebound back over $21,000 in January has resulted in the crowd showing the most optimism they’ve had in markets since July.”