Home
News
- Ethereum’s realized price is $202 whereas the market value is reported to be $164 as per glassnode’s study.
- Glassnode reports also added that Ethereum’s recent value is highly undervalued based on MVRV’s Ratio.
- Ethereum’s MVRV ratio at current has dropped below 1.0 and is now at 0.8, this value is the ratio of the current market value to the current realized value.
ETH, one of the valuable cryptocurrency throughout the world, is just one component of Ethereum, yet it can be mined by individuals more easily than Bitcoin.
According to Glassnode, an on-chain data and intelligence platform, At present the $ETH’s realized price is $202 whereas the market value is reported to be $164, The realized price is one of the metrics that calculates the acquisition cost of the assets located in a wallet.
#Ethereum's MVRV Ratio, a metric used to assess if price is above or below "fair value", currently sits at 0.8 – indicating that it is currently undervalued.$ETH's realized price is currently $202 while current market value is $164.https://t.co/1Ds0PoTar9 pic.twitter.com/etfwk8t4WW
— glassnode (@glassnode) April 6, 2020
Glassnode: Ethereum is Undervalued
The Glassnode has also reported that Ethereum’s MVRV ratio at current has dropped below 1.0 and is now at 0.8, this value is the ratio of the current market value to the current realized value.
The ratio of the current market capitalization (market value) to the current realized value is referred to as the MVRV ratio. This ratio generates an estimation of how overvalued or undervalued the current market cap is. Through this ratio, it is possible to indicate if the market is undervalued or overvalued: If the MVRV is below 1, then the market is said to be undervalued, which means that most people will realise the losses if they choose to sell their holdings. Whereas, if the MVRV is above 1, the market is said to be overvalued.
After having developed an insight about the MVRV ratio, the indication that Ethereum’s MVRV ratio is showing an undervalue is clear by deriving observation of both realization value and market value at present.
ETH’s MVRV Ratio was above one during the first few years after its launch. In the year 2017, ETH MVRV boosted up to 2.94 and 3.14 during different months. Its decline is observed since then, ETH’s MVRV Ratio above 3.0 was last seen in the year 2017.
ETH’s MVRV Ratio dipped below 0.3 in 2018, the lowest value of all. Slight variations of increase in this value was observed in the year 2019 and the same is still persistent this year. However, ETH’s recent MVRV Ratio has not been as high as BTC’s MVRV Ratio.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
