HomeCryptoDogecoin, Shiba Inu, and Seven Additional Cryptocurrencies Are Massively Undervalued Based on One Metric: Sentiment
Dogecoin, Shiba Inu, and Seven Additional Cryptocurrencies Are Massively Undervalued Based on One Metric: Sentiment
January 21, 2023
Analyst platform Santiment says the two largest meme coins by market cap and seven other cryptocurrencies currently pose relatively low risk to investors.
Sanctification He says that based on the Z-score of market value over realized value (MVRV), Dogecoin (DOGE) and Shiba Inu (SHIB) are undervalued and have lower risk.
Dogecoin is trading at $0.86 at the 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, it implies that an asset is undervalued and vice versa. Shiba Inu currently has an MVRV Z-Rating of -1.88 while Dogecoin’s is -0.162, according to Santiment.
Other crypto assets Santiment says are undervalued include 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 claims that Binance Coin (BNB), with a MVRV Z-score of 0.87, is overvalued.
“According to the MVRV Z-Score, which identifies overvalued and undervalued assets based on short- and long-term returns, top caps fall into the following categories:
Turning to Bitcoin, Santiment He says that positive returns from the flagship crypto asset since the start of the year have driven crowd optimism levels in the markets to a six-month high.
“Traders are treating Bitcoin’s signs of life as a signal that a bigger breakout may soon be looming. The bounce over $21,000 in January caused the crowd to show the most optimism they have had in the markets since July.
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