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Time Details
2025-03-20
19:44
Identifying Undervalued Cryptocurrency Tokens: A Methodical Approach

According to Cas Abbé, traders can identify undervalued cryptocurrency tokens by evaluating their Market Capitalization to Total Value Locked (MCap/TVL) ratio using data from platforms like DeFiLlama. An MCap/TVL ratio lower than peers might suggest undervaluation. Additionally, analyzing the Relative Strength Index (RSI) on daily and weekly charts, particularly if under 35, can indicate potential undervaluation. Comparing a token’s network growth against its market capitalization, where faster network growth suggests a potentially good buy, is also crucial. Finally, assessing the token in context with similar tokens can provide further insight. These methods are based on concrete metrics and can guide traders in making informed decisions.

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