A recent in-depth analysis highlighted the potential undervaluation of several leading altcoins, presenting promising opportunities for their recovery over the summer. Noteworthy among these cryptocurrencies are XRP, ADA from Cardano, and the Shiba Inu meme-inspired digital currency (SHIB). The analysis, conducted by renowned cryptocurrency analytics firm Santiment, utilizes realized capitalization as a valuation metric, taking into account the market value of each coin’s recent price movement.
Santiment’s findings cover short, medium, and long-term realized caps, implying a possible reassessment of the market that could support this altcoin. Additionally, the list of undervalued altcoins includes other well-known names such as Dogecoin (DOGE), Polygon (MATIC), Uniswap (UNI), and Chainlink (LINK). Instead, the report highlights the potential overvaluation of cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and BNB, as indicated by the MVRV Z-score, a widely used metric for cryptocurrency valuation.
Notably, XRP has shown strong performance, evidenced by significant inflows into digital asset investment products centered around cryptocurrencies. This surge in interest comes despite a total outflow of $62 million from crypto investment products during the same period.
The inflows come as XRP has substantially strengthened its market cap due to a variety of factors. Among these factors were two unprecedented spikes in activity, ranking the second and third largest in cryptocurrency history, that occurred over two days. Such developments could signal significant upcoming changes in the network’s market position. According to on-chain analytics firm Santiment, the number of addresses involved with the XRP network has soared by an unprecedented 490,000. This figure follows the highest spike recorded on March 18, which led to an impressive 45% jump in the price of XRP over the following ten days.
In Cardano’s case, the decentralized finance ecosystem has witnessed substantial growth in adoption, with the total value of locked up steadily increasing and the decentralized exchange experiencing record-breaking transaction volumes. On a separate note, the Shiba Inu community remains committed to its token burning strategy, and the meme-inspired cryptocurrency has recently recovered from a security downgrade, demonstrating its resilience and potential for future success.