Santiment, the crypto analytics firm, has identified several potentially bullish altcoins in the midst of a thriving cryptocurrency market. To assess their potential, Santiment uses a metric called the market value-to-realized-value (MVRV) Z-score. This measure determines whether an asset is undervalued or overvalued. Assets with a low MVRV Z-score are considered undervalued, while those with a high score are seen as overvalued.
Realized value, on the other hand, is a measure of an asset’s price when it was last transacted, determining whether holders are currently in profit or at a loss. The Santiment team elaborated on this strategy, stating that buying assets that traders have experienced the most pain in historically tend to yield higher returns during market upswings.
According to Santiment, some undervalued assets with low MVRV Z-scores include Uniswap (UNI), Shiba Inu (SHIB), Polygon (MATIC), Chainlink (LINK), Cardano (ADA), and XRP. On the other hand, riskier yet potentially high-gain assets include Toncoin (TON), Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE).
Although Santiment doesn’t provide MVRV data for Stellar (XLM), the firm notes that the competitor to XRP has seen negative social volume and sentiment, which could indicate a mildly bullish outlook for the asset.
In conclusion, with the cryptocurrency market on the rise, Santiment has highlighted various altcoins that show potential for bullish performance based on their MVRV Z-scores and realized values.