Amid the current uncertainty in the crypto market, an on-chain metric suggests that Chainlink (LINK), Cardano (ADA), and Ethereum (ETH) may be significantly undervalued.
According to digital asset analytics firm Santiment, all three assets are showing negative percentages for their 30-day Market Value to Realized Value (MVRV) ratios.
MVRV is the ratio of a crypto asset’s market capitalization to its realized capitalization, indicating the value of all coins at the price they were purchased.
When the MVRV drops below zero, it indicates that the asset is oversold, with traders who bought it at a specific time facing losses.
“The lower a coin’s 30-day MVRV, the lower the risk in opening or adding to your position. A negative percentage means that average traders are experiencing losses, presenting an opportunity to buy while profits are below the norm. The more negative, the safer it is to buy. Conversely, a positive percentage indicates higher risk as average traders are in profit, making it more dangerous to buy.”
Chainlink’s 30-day MVRV is at -9.5%, Cardano’s at -7.9%, and Ethereum’s at -7.6%.
XRP also shows an undervalued ratio at -5.7%, while Bitcoin (BTC) is considered mildly undervalued with a score of -3.7%, as per Santiment.
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Featured Image: Shutterstock/Gorodenkoff/Sensvector