Santiment, a crypto analytics firm, has recently identified several altcoins that could see significant gains when the crypto market rallies.
According to Santiment, crypto investors should focus on undervalued altcoins or coins trading at low values to maximize profits in the upcoming altcoin season.
The firm believes that altcoins that have shown extreme price declines have the best return potential.
Santiment analyzes assets using the Market Value-to-Realized-Value (MVRV) Z-score, which helps determine if an asset is undervalued or overvalued.
Here are some major altcoins that Santiment identifies as having high return potential:
Uniswap (UNI)
Uniswap’s native token, UNI, has the lowest MVRV Z-score among major altcoins, indicating that the average trader feels the most pain and thus presents a lower risk. Currently, the coin trades around $7.77, with a Fully Diluted Value (FDV) of $7.3 billion.
FDV is the total value or market capitalization of a crypto asset if the entire supply of tokens is in circulation. This metric is used to estimate the future potential of a project, providing investors with insights into potential price pressure or dilution effects.
Shiba Inu (SHIB)
SHIB ranks as the second-largest meme coin by market capitalization.. Currently, it trades around $0.000017 with an FDV of $10.1 billion.
The coin has attracted considerable attention from traders, particularly following the launch of the Shibarium layer-2 network on Ethereum and its ongoing ecosystem development.
Polygon (MATIC)
MATIC is the native token of the layer-2 network, Polygon. Currently, it trades around $0.51 with an FDV of $5.1 billion.
MATIC will soon undergo a migration process to POL on September 4, 2024. The POL token will replace MATIC as the token for gas fees and staking on Polygon’s proof-of-stake (PoS) network. POL will play a crucial role in the AggLayer Polygon ecosystem in the future.
Chainlink (LINK)
LINK plays a critical role in democratizing smart contracts across various multi-chain projects. The coin trades around $13.77 with an FDV of $13.7 billion.
Institutional adoption of Chainlink has increased, especially after successfully running a pilot program with the Depository Trust and Clearing Corporation (DTCC) to enhance the tokenization of traditional financial funds.
Cardano (ADA)
Cardano is the tenth-largest altcoin by market capitalization. Its current price is around $0.42 with an FDV of approximately $18.8 billion. Sentiment boosting its price includes the upcoming ecosystem update with the anticipated Chang hard fork in August 2024. This update marks a significant milestone in Cardano’s roadmap, aiming to provide fully decentralized governance for the Cardano ecosystem and initiate the Voltaire Era, characterized by significant changes to the network’s political system.
XRP (XRP)
XRP is a crypto token supported by the blockchain-based digital payment network, Ripple. Currently, the token trades around $0.60 with an FDV of $60 billion.
The token has significantly benefited from notable progress in the ongoing lawsuit filed by the U.S. Securities and Exchange Commission (SEC).
In addition to highlighting altcoins that could provide returns to investors, Santiment also notes that high-return assets currently pose more risk for purchase, including Toncoin (TON), Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE).
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