The crypto analytics firm Santiment outlined potentially bullish altcoins as digital asset markets ticked upwards on Friday.
Santiment analyzes assets by their market value-to-realized-value (MVRV) Z-score, which aims to measure whether they are undervalued or overvalued.
[adinserter block="1"]An asset tagged with a low MVRV Z-score is seen as undervalued while those with a high MVRV Z-score are viewed as overvalued.
Meanwhile, realized value records the price of each asset when it last moved and aims to gauge how many holders are in profit or at a loss.
Explains Santiment,
“If you believe markets are about to surge, history says that buying into assets that traders have experienced the most pain in have a greater probability of netting high returns for you.”
Santiment notes that high-pain assets with low MVRV Z-scores include the decentralized exchange (DEX) Uniswap (UNI), the memecoin Shiba Inu (SHIB), the blockchain scaling solution Polygon (MATIC), the decentralized oracle network Chainlink (LINK), the smart contract platform Cardano (ADA) and the payments altcoin XRP.
High-gain assets that are currently riskier buys include the layer-1 blockchain Toncoin (TON), Bitcoin (BTC), Ethereum (ETH) and top meme asset Dogecoin (DOGE).
Santiment doesn’t have MVRV data on Stellar (XLM), but the analytics firm also notes that the XRP competitor’s social volume and sentiment have been on the negative side, a “mildly bullish” sign for the asset.
Follow us on X, Facebook and Telegram
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
