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.
