Analytics platform Santiment says that the two largest meme coins by market cap and seven other crypto assets currently pose a relatively lower risk for investors.
Dogecoin is trading at $0.86 at time of writing while Shiba Inu is changing hands at $0.000012.
The MVRV Z-score is used to determine whether an asset is undervalued or overvalued. When the MVRV Z-score is in negative territory, implies that an asset is undervalued and vice versa. Shiba Inu currently has an MVRV Z-score of -1.88 while Dogecoin’s is -0.162, according to Santiment.
Other crypto assets that Santiment says are undervalued are Bitcoin (BTC), Ethereum (ETH), XRP, Cardano (ADA), layer-2 solution Polygon (MATIC), decentralized exchange Uniswap (UNI) and blockchain oracle Chainlink (LINK).
On the other hand, Santiment says that Binance Coin (BNB), with an MVRV Z-score of 0.87, is overvalued.
“According to MVRV Z-Score, which identifies overvalued and undervalued assets based on short and long-term returns, top caps are in the following categories:
Undervalued: BTC, ETH, XRP, ADA, DOGE, MATIC, SHIB, UNI, LINK.”
Turning to Bitcoin, Santiment says that the flagship crypto asset’s positive returns year-to-date have resulted in the crowd optimism levels in the markets rising to a six-month high.
“Traders are treating Bitcoin’s signs of life as a signal that a bigger breakout may be looming soon. The rebound back over $21,000 in January has resulted in the crowd showing the most optimism they’ve had in markets since July.”
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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