Cryptocurrency Although their prices are quite volatile, they are sometimes overvalued or undervalued. When such a situation occurs, it is difficult to fully understand the true value of the crypto asset.
Analytical firm Santiment has shared reviews for high-value and low-value coins. Cardano (ADA), Shiba Inu (SHIB), Ripple (XRP) and Dogecoin (DOGE) are among the cryptocurrencies with low value.
Binance’s native token Binance Coin (BNB) is on the list of overvalued assets.
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Koinfinans.com As we report, overvaluation happens when investors value the crypto asset far more than its fundamental value. This situation generally increases with the increase of speculation. However, in such cases, the excitement quickly subsides and the price drops sharply.
On the other hand, a low value of the crypto asset represents the opposite situation. In this case, it is possible to say that the asset is traded much lower than its fundamental value.
Santiment Data Gets Attention
centimentannounced that it measures the value of the crypto-asset based on the MVRV Z-Score. The ratio between market capitalization (MVR) and realized capitalization (RV) is calculated. In summary, the current value of the asset is compared with all previous values and the result is obtained. In particular, when the MVRV Z-Score is above zero, it is possible to say that the current prices of cryptocurrencies are higher than their fundamental values.