Bitcoin, Ethereum, XRP and Cardano have more meat on the bone, rank in undervalued assets in 2023

Bitcoin (BTC), Ethereum (ETH), XRP, Cardano (ADA), meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) are undervalued in 2023, according to an on-chain m
  • Bitcoin, Ethereum, XRP, Cardano and meme coins Dogecoin and Shiba Inu are undervalued according to a key on-chain metric.
  • MVRV Z-Score is the metric that identifies overvalued and undervalued assets based on short and long term results.
  • Binance’s native token BNB is the only overvalued crypto while most others have more meat on the bone to make up for 2022 losses.

Bitcoin (BTC), Ethereum (ETH), XRP, Cardano (ADA), meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) are undervalued in 2023, according to an on-chain metric MVRV Z-score. The MVRV Z-Score is a key metric used to identify periods where an asset is overvalued or undervalued relative to its “fair value.”

Binance’s native token Binance Coin (BNB) is overvalued while most other large market capitalization cryptocurrencies are undervalued in 2023, according to the MVRV Z-score.

Also read: Here’s how Ethereum whales predict massive gains in meme coin Shiba Inu

Bitcoin, Ethereum, Cardano and XRP have the potential for gains in 2023 according to this on-chain metric

Large market capitalization cryptocurrencies like Bitcoin, Ethereum, XRP, Cardano and meme coins Dogecoin and Shiba Inu had a bullish start to 2023. As the cryptocurrencies continue yielding gains for holders, an on-chain metric, the MVRV Z-score signals these assets are currently undervalued.

MVRV Z-Score is a metric based on market value and realized value of cryptocurrencies. Market value is the total value of all coins that have already been mined. This is obtained by multiplying the coin’s circulating supply with the current price of the asset.

The realized value is the sum of the latest selling price of every token in circulation at the time it was sold, and this is obtained by adding the most recent sale price for every token already mined, the last time it moved to a different wallet address.

The MVRV-Z score is used to assess when an asset is overvalued or undervalued relative to its “fair value”, as underlined by the deviation between its market and realized capitalization. When market value is significantly higher than realized value, it historically indicates a market top, while the opposite indicates a market bottom.

Average returns for cryptocurrencies

Average returns for cryptocurrencies indicate room for price rally

As seen in the chart above, analysts at crypto data aggregator Santiment, Binance Coin is a higher risk investment when compared to Bitcoin, Ethereum, XRP, Cardano and meme coins. The average addresses have decreased, signaling these large market capitalization cryptocurrencies are low-risk investments in the long-term.

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Also read: Here’s how Ethereum whales predict massive gains in meme coin Shiba Inu

Source: https://www.fxstreet.com/cryptocurrencies/news/bitcoin-ethereum-xrp-and-cardano-have-more-meat-on-the-bone-rank-in-undervalued-assets-in-2023-202301201048

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