SNEAK PEEK

• Santiment identifies undervalued altcoins with growth potential.
• Realized capitalization offers a more accurate value representation.
• Market perception undervalues altcoins, presenting opportunities for investors.

In the dynamic world of cryptocurrency, identifying undervalued assets can be challenging yet rewarding. Recent data from Santiment, a renowned provider of on-chain and social media analytics, indicates that some well-known altcoins might be undervalued. 

📊 Several of the largest #altcoins show undervaluation when combining short, mid, and long term realized capitalizations. Market caps are above realized caps for $XRP, $ADA, $DOGE, $MATIC, $SHIB, $UNI, & $LINK, hinting many may make up ground this summer. https://t.co/3wLIFZ8B90 pic.twitter.com/WMzy4imOO9

— Santiment (@santimentfeed) June 4, 2023

As per the reports, this assessment is based on their realized capitalizations across short, mid, and long-term periods. This analysis further points towards the potential for these altcoins, including XRP, ADA, DOGE, MATIC, SHIB, UNI, and LINK, to gain ground in the coming summer months.

Unlike market capitalization, which is calculated based on the current price multiplied by the circulating supply of a cryptocurrency, realized capitalization considers the price at which each unit of the asset was last moved. This metric offers a more accurate representation of the total value invested in a cryptocurrency, as it considers the price at which coins were prior transacted rather than the current market price.

Potential Factors Driving Undervaluation

The recent market correction is among the potential factors that might drive the undervaluation of these altcoins. Based on sources, the cryptocurrency market experienced a significant correction in recent months, leading to a general decrease in altcoin prices. This correction may have caused the market capitalization to exceed the realized capitalization, as the latter reflects historical transactions and does not factor in short-term volatility. 

Another factor is Market Perception. Altcoins tend to be more volatile and speculative than established cryptocurrencies like Bitcoin and Ethereum. This perception may result in market participants undervaluing the potential of these altcoins, creating an opportunity for investors who recognize their long-term growth prospects.

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• Source: https://investorbites.com/santiments-data-uncovers-hidden-opportunities-in-undervalued-altcoins/