Santiment, the leading provider of on-chain and social media metrics for cryptocurrencies, mentioned several major altcoin projects in a recent report. These coins were found to be potentially undervalued. The analysis combines short, medium and long-term realized market caps, suggesting that these altcoins could be ready for a significant market recovery in the coming summer. Here are the details…
Santiment expects recovery for these altcoin projects
According to Santiment’s findings, some coins are gaining attention. For example, the market value of XRP, ADA, DOGE, MATIC, SHIB, UNI and LINK is higher than their realized values. So, how does this inconsistency affect expectations? It raises the possibility that these altcoins could experience a price correction as their market values become closer to their true values. Therefore, it indicates an impairment. Santiment also argues that BTC, ETH, and BNB are currently overvalued cryptos.
Santiment is a popular data service, as we have reported as Kriptokoin.com. Santiment’s methodology refers to comparing a cryptocurrency’s market value with its realized market value. The realized market capitalization takes into account the last time each token moved. Thus, it provides a more accurate picture of the investment behavior and sentiment surrounding altcoins. Undervaluation can occur for a variety of reasons, including market sentiment, short-term fluctuations, or a lack of awareness of a token’s underlying technology and potential use cases.
There are positive expectations for the summer months
As far as the aforementioned altcoins are concerned, Santiment’s analysis continues. It suggests the possibility that these may have been overlooked or undervalued in the wider market. While Santiment’s report does not provide specific price predictions, it highlights the potential for these altcoins to “gain ground” in the summer. This optimistic outlook indicates that the market will become aware of the depreciation. That is, it is based on the expectation that by adjusting prices accordingly, it will lead to significant price increases for the altcoins in question.
It is important to remember that the cryptocurrency market is extremely volatile and investing in altcoins carries inherent risks. Investors should be careful and do their own research before making any investment decision. The Santiment report has already garnered interest among cryptocurrency enthusiasts and investors. It created anticipation of a potential “summer recovery” in the altcoin market. Investors and enthusiasts will be watching closely the performance of XRP, ADA, DOGE, MATIC, SHIB, UNI and LINK to see if they are truly realizing their low valuation potential. As with any investment, it is important to keep in mind that the cryptocurrency market is volatile.
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