Santiment's MVRV Analysis Reveals XRP as Undervalued, Ethereum Overbought Among Major Cryptos

On-chain analytics firm Santiment has released a detailed analysis of the 30-day Market Value to Realized Value (MVRV) Ratio for several top cryptocurrencies, revealing divergent investor profitability trends. The MVRV Ratio compares an asset's market capitalization to its Realized Cap, which estimates the total capital invested by calculating each token's value at its last on-chain transaction price. This ratio serves as a key indicator of the profit-loss balance among investors.

Santiment's analysis specifically focuses on the 30-day MVRV Ratio, which tracks the profitability of traders who entered the market within the past month. The firm shared a chart comparing Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), XRP, and Chainlink (LINK).

The data shows Ethereum currently has the highest positive 30-day MVRV Ratio at 7.2%, indicating that recent market entrants are sitting on gains of that magnitude. This places ETH in what Santiment defines as a "mild overbought" or overvalued zone, suggesting a higher risk of a price correction as profitable investors may look to sell.

Bitcoin's 30-day MVRV Ratio is positive but much lower at 2.4%, meaning recent traders are essentially breaking even. Chainlink shows a nearly neutral trend with a ratio of -0.3%.

In contrast, Cardano and XRP show negative ratios, indicating recent buyers are at a loss. ADA's 30-day MVRV is -4.4%, while XRP's is the lowest among the group at -6.1%. According to Santiment's classification, XRP is the only asset currently in an "undervalued" zone based on this metric.

Santiment interprets these negative values as potentially bullish signals. The firm explains that high investor gains increase the likelihood of a selloff for profit-taking, making a market top more probable. Conversely, deep negative values suggest profit-takers have likely been depleted, which can create a buying opportunity as the asset may be poised to "catch up." The firm stated that coins with lower 30-day MVRV ratios, like XRP and ADA, present less risk for opening or adding to swing trade positions and have higher growth potential.

At the time of the report, XRP was trading around $2.04, reflecting a 1.5% increase over the preceding 24 hours.