On-chain analytics firm Santiment has highlighted that XRP and Ethereum are among the cryptocurrencies currently in the “undervalued” zone based on the MVRV Ratio. In a recent post on X, Santiment discussed the 30-day Market Value to Realized Value (MVRV) Ratio for several major cryptocurrencies, including XRP and Bitcoin.
The MVRV Ratio compares a cryptocurrency’s market cap to its Realized Cap, which estimates the total capital invested by calculating each token’s value at its last transaction price. This ratio helps gauge overall investor profitability.
Santiment’s chart tracks the 30-day MVRV Ratio for Bitcoin, Ethereum, XRP, Cardano, and Chainlink. Recently, all five have seen this ratio turn negative, meaning investors who bought in the past month are now at a loss. According to Santiment, this signals an “undervalued” condition.
The firm explains that a negative MVRV suggests average traders are losing money, creating a potential entry opportunity when profits are below the usual “zero-sum game” level. However, not all negative values are equal—the lower the 30-day MVRV, the lower the risk for opening or adding to a position.
Santiment defines a ratio down to -5% as “mildly undervalued.” Bitcoin currently sits at -3.7%, placing it in this category. Meanwhile, XRP and Ethereum are at -5.7% and -7.6%, respectively, indicating a stronger undervalued state. Chainlink shows the deepest losses at -9.5%.
In terms of price, XRP dipped to $1.8 on Sunday but has since recovered to above $1.9.
Frequently Asked Questions
FAQs Santiment Reports on XRP Ethereum Being Undervalued
BeginnerLevel Questions
1 What does it mean that XRP and Ethereum are undervalued
It means that according to a specific metric the current market price of these assets is lower than the average price most investors paid for them This suggests they might be trading below their fair value based on historical investor behavior
2 What is an MVRV ratio
MVRV stands for Market Value to Realized Value Its a tool that compares a cryptocurrencys current market cap to its realized cap A low ratio often signals potential undervaluation
3 How does the MVRV ratio show something is undervalued
A low MVRV ratio indicates that the assets current market price is below the average cost basis of its holders In simple terms many holders are currently at an unrealized loss which can sometimes precede a price recovery
4 Is this a guarantee that the price will go up
No it is not a guarantee Its a signal or indicator based on onchain data While it has been a useful metric historically many other factors like news regulations and overall market sentiment can override it
5 Where can I see these Santiment reports
Santiment publishes insights on its website blog social media channels and within its premium data dashboard for subscribers
Advanced Practical Questions
6 Whats the difference between Market Cap and Realized Cap in the MVRV formula
Market Cap Current price total supply Its the total value of all coins at todays price
Realized Cap Values each coin at the price it was last moved not the current price It sums the economic value invested at the time each coin was acquired creating a more costbased valuation
7 What are the main limitations or problems with relying on the MVRV ratio
Its a historical indicator It reflects past behavior not future events