New data from market research firm Santiment suggests that altcoins may recoup some of their losses from the crypto market’s sharp downturn last week.
According to the crypto analytics platform, altcoins are showing “overwhelming undervaluation” following last week’s carnage, leaving investors divided on how quickly the markets can recover.
Using the Market Value to Realized Value (MVRV), which measures whether a crypto asset is overvalued or undervalued, Santiment finds that most altcoins are currently trading in the under-bought zone.
“Market caps have fallen significantly over the past week and traders are very polarized. Many believe a speedy recovery is on the way, while others see this as just the beginning of the mess. But there is no denying that average crypto returns are in a mathematically historic opportunity zone.”
Sanitation continues participation that last week’s crash was one of the “sharpest declines” seen this year, but notes that Bitcoin (BTC) whales have remained extremely active during the recession.
“The dust is far from settling after crypto markets had one of the sharpest price drops of 2023. We are seeing a large number of $1 million+ BTC transactions, indicating that whales are very active in this dump. But the number of large wallets is not decreasing.”
Bitcoin is trading at $26,130 at the time of writing, a fractional increase over the past 24 hours, but a 13% drop from its seven-day high of $29,652.
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Featured image: Shutterstock/Tithi Luadthong/Natalia Siiatovskaia