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In the crypto market, recent analysis using suggests that a significant majority of altcoins are in a buy zone.
This presents a potential opportunity for investors looking for favorable entry points.
Most Altcoins Are in History Buy Zone
The Market Value to Realized Value (MVRV) ratio compares the market capitalization of a cryptocurrency to its realized capitalization.
Market capitalization refers to the total value of all coins in circulation, calculated by multiplying the current price of a crypto by the total number of coins. Realized capitalization, on the other hand, values each unit of crypto at the price it was last transacted, providing a nuanced view of the money invested over time.
This differentiation is vital. While market capitalization can be inflated by speculative trading, realized capitalization represents a grounded assessment of an asset’s true value. A low MVRV ratio indicates that the price of a crypto might be undervalued relative to the actual amount of capital invested in it. Therefore, it suggests a potential buy signal for savvy investors.
Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024
According to blockchain analytics platform Santiment, over 85% of altcoins are currently positioned in a “historic opportunity zone.” This assessment is based on the MVRV ratios calculated from collective returns of wallet holdings over varying time frames.
“It may be justified to buy while there is growing fear seeping in from the crowd after all of these market cap dips,” Santiment noted.
These Are the Altcoins to Watch
Some of the most undervalued altcoins include Dego Finance (DEGO), Bella Protocol (BEL), and 0x Protocol (ZRX). Here is the full list of notable altcoins, all suggesting considerable undervaluation according to the latest data.
| Asset | MVRV Ration (30D) |
| Dego Finance (DEGO) | -37.01% |
| Bella Protocol (BEL) | -31.69% |
| 0x Protocol (ZRX) | -29.60% |
| Reserve Rights (RSR) | -29.02% |
| Dusk (DUSK) | -28.18% |
| IDEX (IDEX) | -27.33% |
| Frax Share (FXS) | -26.37% |
| Gitcoin (GTC) | -26.36% |
| Audius (AUDIO) | -26.32% |
| ApeCoin (APE) | -26.10% |
| SushiSwap (SUSHI) | -24.77% |
| AdEx (ADX) | -24.31% |
| VIDT DAO (VIDT) | -23.94% |
| Ethernity (ERN) | -23.92% |
| QuickSwap (QUICK) | -23.80% |
| Beta Finance (BETA) | -23.72% |
| League of Kingdoms Arena (LOKA) | -23.60% |
| Linear Finance (LINA) | -23.43% |
| Chromia (CHR) | -23.24% |
| Treasure (MAGIC) | -23.21% |
| Bitcoin Cash (BCH) | -22.11% |
| StormX (STMX) | -22.06% |
| StaFi (FIS) | -21.56% |
| Synthetix (SNX) | -20.87% |
| SuperRare (RARE) | -21.44% |
| Ampleforth Governance Token (FORTH) | -20.46% |
For investors, this could signify a crucial moment to consider diversifying portfolios or entering new positions at a lower risk. However, it is essential to conduct thorough research. One must consider other market factors and personal investment goals before making any financial decisions.