According to the 30-day MVRV Ratio, XRP is currently in a mildly undervalued zone. Here’s how it compares to other major cryptocurrencies like Bitcoin and Ethereum.
XRP 30-Day MVRV Ratio Shows Negative Returns
In a recent post on X, on-chain analytics firm Santiment discussed the current state of the 30-day Market Value to Realized Value (MVRV) Ratio for top cryptocurrencies, including Bitcoin and XRP.
The MVRV Ratio tracks the relationship between an asset’s market capitalization and its Realized Cap. The Realized Cap estimates the total capital investors have used to purchase their tokens, based on the price at which each token last moved on the blockchain. In contrast, market cap reflects the asset’s current total value. By comparing the two, the MVRV Ratio provides insight into the overall profit or loss position of investors.
The focus here is on the 30-day MVRV Ratio, which specifically measures the profit or loss for traders who entered the market within the past month.
Santiment shared a chart illustrating the trend in the 30-day MVRV Ratio for Bitcoin, Ethereum, Cardano, XRP, and Chainlink. The chart reveals that the metric varies significantly across these assets, indicating different conditions for recent buyers.
Ethereum currently shows a positive ratio of 7.2%, meaning investors from the past month are holding an average gain of 7.2%. Bitcoin’s ratio is also positive but much lower at 2.4%, suggesting those traders are roughly breaking even. Chainlink’s ratio is nearly neutral at -0.3%. Cardano’s recent traders are in the red with a -4.4% ratio, while XRP shows the deepest negative value at -6.1%, indicating the weakest short-term profitability among the group.
However, this situation may not be negative for XRP. When investor profits are high, the likelihood of selling for profit-taking increases, which can raise the risk of a price top. Conversely, deeply negative values can be bullish, as they suggest that most profit-taking has already occurred and selling pressure may be exhausted.
On the chart, Santiment has marked overvalued and undervalued zones based on the 30-day MVRV Ratio. Currently, XRP is the only asset in an undervalued zone, while Ethereum is in a mildly overbought region.
XRP Price
At the time of writing, XRP is trading around $2.04, up 1.5% over the past 24 hours.
Frequently Asked Questions
Frequently Asked Questions About XRP MVRV Ratio and Comparisons with Bitcoin Ethereum
BeginnerLevel Questions
What is the MVRV ratio
The MVRV ratio compares a cryptocurrencys current market price to the average price at which all coins were last moved onchain It helps gauge whether an asset is potentially overvalued or undervalued relative to its historical cost basis
What does it mean that XRP appears slightly undervalued based on its MVRV ratio
It suggests that XRPs current market price is lower than the average price most holders paid for their coins Historically when MVRV is low it can indicate a potential buying opportunity as the asset may be trading below its fair value based on investor cost bases
How is Bitcoins MVRV ratio different from XRPs
Bitcoins MVRV is often watched as a marketwide indicator It tends to have more established historical cycles Currently Bitcoins MVRV might be in a different zone signaling a different market sentiment compared to XRP
And Ethereum
Ethereums MVRV functions similarly reflecting the sentiment of its holders Its ratio can be influenced by different factors like staking activity and network upgrades making direct comparison with XRP or Bitcoin nuanced
Is a low MVRV ratio a guaranteed buy signal
No Its one metric among many A low MVRV suggests potential undervaluation but doesnt guarantee the price will rise soon Always consider other fundamentals market conditions and project health
Intermediate Advanced Questions
How do I find the current MVRV ratios for these assets
You can find them on specialized onchain analytics platforms like Glassnode CryptoQuant or Santiment These sites track the metric in realtime and often provide historical charts and context
Why might XRPs MVRV behave differently from Bitcoins
XRP has a different use case a different distribution model and faces unique regulatory and legal pressures These factors heavily influence holder behavior and cost bases
Can the MVRV ratio be broken or misleading for certain coins
Yes For