Latest data have noted that ADA is highly undervalued
ADA is currently the seventh-largest cryptocurrency in terms of market cap, as per data from CoinMarketCap. Since its establishment, the project has witnessed notable adoption and achieved several millennial milestones. In the last month, the coin traded between $1.15...
ADA is currently the seventh-largest cryptocurrency in terms of market cap, as per data from CoinMarketCap. Since its establishment, the project has witnessed notable adoption and achieved several millennial milestones. In the last month, the coin traded between $1.15 and $1.63. According to analysts, Cardano’s native cryptocurrency is poised for a strong upside correction. Moreover, while observing the MVRV 365 days chart, it is noted that the cryptocurrency is undervalued at its current price.
ADA could soon witness a massive surge
Analysts in the cryptosphere assert that the last time ADA was undervalued was during the global COVID-19 pandemic. At the time, the global crypto market faced a massive crash considering tremendous losses. Amid the losses, the month was succeeded with a massive surge in the cryptocurrency price.
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The MVRV metric or market value to realized value helps investors gauge the fair price of an asset. Such data essentially provides an insight into the percentage of investors in an asset that is currently in or out of gains. Moreover, the data is also used for marking the market tops and bottoms by noting how low or high it is.
According to data from Santiment, the MVRV 365D of the Ada blockchain that measures the profit and loss status of wallets holding the cryptocurrency bought in the last year indicates that the investors are sitting on an average loss of -26%.
Notably, the ultimate scenario explains that ADA’s price could be poised for a massive uptrend.
Is there any catalyst for Cardano’s surge?
The metric reflects the market’s sentiment for Cardano’s native crypto coin price. The blockchain is in the middle of a massive growth phase. Multiple decentralized apps (dApps) have been launched on both the network’s testnet and mainnet.
The total value locked (TVL) on the network’s DeFi platforms is around $100 million as per data from DeFiLlama. Moreover, we have also noted that several projects on a rapidly expanding ecosystem are in the works.
In response to the increased activity on the network, Input Output Hong Kong, the firm behind the project, outlined plans to scale the blockchain. Hence, the brains behind the blockchain network have shared a roadmap to scale this year. Notably, the roadmap includes several new updates and parameter adjustments for the network.
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