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Cryptocurrencies have witnessed a remarkable recovery this year, bouncing back from the market slump experienced in 2022. However, despite the significant rebound, their current values remain significantly below the record-breaking all-time highs reached in 2021.

In that view, some of the biggest altcoins are indicating notable undervaluation when combining short, mid, and long-term realized capitalizations, according to data by crypto behavior analytics platform Santiment, retrieved by Finbold on June 5.

Specifically, there are several altcoins with market caps above their realized caps, including XRP (XRP), Cardano (ADA), Polygon (MATIC), Shiba Inu (SHIB), Dogecoin (DOGE), Uniswap (UNI), and Chainlink (LINK).

Santiment noted: Realized capitalizations are far below market capitalizations, revealing undervaluation.

Such data suggest that the aforementioned cryptocurrencies are in a position to make up the lost ground, hinting at a possible price resurgence this summer.

To signal which assets are undervalued or overvalued, Santiment uses a metric known as MVRV-Z Score (MVRV standing for Market Value to Realized Value). This measure refers to the ratio between the market value of a crypto asset and its realized value, as well as the standard deviation of a market value.

In other words, it is used to indicate when the market cap of a cryptocurrency is either above or below its perceived valuation. A negative MVRV value implies that the cryptocurrency is undervalued on average. Put differently, if all coins were sold, most traders will be realizing losses at the assets current price, Santiment explains.

Having said that, the most undervalued altcoin according to the MVRV ratio is SHIB, with an MVRV-Z Score of -3.48, followed by UNI (-2.67), LINK (-1.5), XRP (-0.6), ADA (-0.6), DOGE (-0.1) and MATIC (-0.08).

On the other hand, crypto assets that are currently overvalued relative to their fair value, include Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB).

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Buckle up: 7 undervalued altcoins that may skyrocket this summer - Finbold - Finance in Bold