• A crypto analyst says Cardano is currently undervalued
  • It is often dubbed by many as Ethereum killer
  • There are currently 199 projects on the Cardano blockchain

A prominent cryptocurrency analyst, Ali Martinez, recently revealed the Santiment’s Market Value to Realized Value (MVRV) indicator to show that the Cardano network appears to be undervalued.

The Cardano network has accomplished a number of milestones in recent months. Yet, despite the progress made with the blockchain's expansion, ADA, the native token of the Cardano blockchain, has not shown any growth recently.

Ali Martinez notes in particular that as per the (MVRV) indicator, Cardano, the world's most significant proof of stake (PoS) blockchain, has not been this underrated since the crypto crisis sparked by the COVID19 upsurge in March 2020.

MVRV is a stand-alone statistic utilized in the cryptocurrency market to identify market tops and bottoms. The indicator is always regarded as practical based on past data.

When comparing the price of a cryptocurrency to its real value, the MVRV ratio can be used to determine whether the price is appropriate or not.

In general, the lower the MVRV ratio, the more likely it is that the item's price under observation will climb, as this critical indicator calculates the average profit or loss of previous addresses that purchased the asset in question.

The MVRV 365D, which calculates the profit or loss of addresses that purchased ADA in the preceding 365 days, indicates that ADA holders lost -26 percent.

Cardano is also considered one of Ethereum's legitimate adversaries, often dubbed as the Ethereum killer. Numerous observers believe that this long developing project, led by Ethereum co-founder Charles Hoskinson, is still the rightful replacement of Ethereum. Yet, despite the launch of its Guguen smart contract, the price of ADA has stayed pretty stagnant, while the value and adoption of other L1 chains like Solana have continued to soar.

There are currently 199 projects being built on the Cardano blockchain. Their latest feature, Hydra, is a significant Layer 2 solution for increasing Cardano's scalability further by layering a new protocol on top of the existing Layer 1 blockchain.

ADA is presently trading at $1.03, down by 1.40% in the last 24 hours.

According to CoinMarketCap data, Cardano, the sixth-largest cryptocurrency by market capitalization, is currently worth $34.75 billion.

Cardano logo
Cardano hits 1M staking wallets. Pixabay