New data from on-chain analytics firm Santiment reveals a significant shift in short-term profitability across major cryptocurrencies following a recent market bounce. Using the 30-day Market Value to Realized Value (MVRV) metric, Santiment assessed whether large-cap assets are currently undervalued, neutral, or overvalued based on the average return of holders over the past month.
The 30-day MVRV measures the average profit or loss of traders who bought within the last 30 days. A negative MVRV indicates the average holder is at a loss, often considered undervalued territory. A value near 0% is neutral, while a positive MVRV shows traders are in profit, with increasing risk of overvaluation as profits rise.
Following the market climb, the positioning of key assets has diverged. Ethereum (ETH) sits at -5.5%, placing it in a mildly undervalued zone, meaning recent buyers are still holding an average loss. Bitcoin (BTC) at -1.4% and XRP (XRP) at -0.1% are in neutral territory. Chainlink (LINK), with a +3.3% MVRV, is also neutral but slightly profitable. In contrast, Cardano (ADA) has moved into mildly overvalued conditions with an MVRV of +6.8% following its recent breakout.
The broader market has seen a bullish trend reversal, with the total crypto market cap gaining 7.50% in 24 hours to reach $2.38 trillion. Bitcoin surged 7.78% to $69,050, while Ethereum reclaimed the $2,000 level with a 13.31% gain. XRP and LINK posted gains of 9.37% and 16.07%, respectively. Cardano experienced a striking 20.07% upsurge to trade at $0.3115.
Analysts link the renewed risk appetite to record-breaking earnings from tech giant Nvidia, driven by AI demand, which fueled investor sentiment in correlated risk assets like crypto. Furthermore, Bitcoin ETFs saw $257.7 million in net inflows this week, ending a five-week outflow streak. Capital rotation from Bitcoin to altcoins has also contributed to their rallies as investors seek higher returns.
Santiment emphasizes that MVRV offers a data-driven way to assess sentiment. Deeply negative MVRV often signals fear and potential accumulation zones, while significantly positive values suggest increased profit-taking risk. The current data indicates rotation and differentiation within large caps rather than broad market overheating.
