An insightful analysis has recently highlighted the potential undervaluation of several prominent altcoins, presenting a promising opportunity for their recovery during the summer. Noteworthy among these cryptocurrencies are XRP, ADA from Cardano, and the meme-inspired digital currency Shiba Inu (SHIB). The analysis, carried out by renowned cryptocurrency analytics firm Santiment, leverages realized capitalizations as a valuation metric, considering the market value of each coin’s most recent price movement.
Santiment’s findings encompass short, mid, and long-term realized capitalizations, implying the likelihood of a market reassessment that could favor these altcoins. Additionally, the list of undervalued altcoins includes other notable names such as Dogecoin (DOGE), Polygon (MATIC), Uniswap (UNI), and Chainlink (LINK). Conversely, the report highlights the potential overvaluation of cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and BNB, as indicated by the MVRV Z-score, a widely employed metric for cryptocurrency valuation assessment.
Notably, XRP has exhibited strong performance, evidenced by significant inflows into digital asset investment products centered around cryptocurrency. This surge in interest occurred despite a total outflow of $62 million from crypto investment products during the same period.
The inflows come when XRP has substantially bolstered its market capitalization due to various factors. Among these factors are two unprecedented spikes in activity, ranking as the second and third largest in the cryptocurrency’s history, occurring within two days. Such developments could signify significant forthcoming changes in the network’s market position. According to the on-chain analytics firm Santiment, the number of addresses engaging with the XRP network has surged to an unprecedented 490,000. This figure closely trails the highest recorded spike on March 18th, leading to an impressive 45% surge in XRP’s price over the next ten days.
In the case of Cardano, the decentralized finance ecosystem has been witnessing substantial growth in adoption, with the total value locked steadily increasing and decentralized exchanges experiencing record-breaking transaction volumes. On a separate note, the Shiba Inu community has remained committed to its token-burning strategy, and the meme-inspired cryptocurrency has recently rebounded from a security rating drop, demonstrating resilience and potential for future success.
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