Here are the ‘High-Risk’ Altcoins That May Attract Huge Profits in August—Do You Own Some?

High-Risk Altcoins Poised for Potential Profits in August

Amidst market uncertainty, select altcoins have emerged as potential high-return investments. The surge in institutional interest, particularly after the introduction of spot Bitcoin and Ethereum ETFs, has heightened concerns about potential market volatility.

MVRV Ratio Analysis

The MVRV ratio, which compares a token's market capitalization to its realized capitalization, assesses investment risk. Tokens with high MVRV ratios are considered overvalued, while those with low ratios are potentially undervalued.

High-Risk, High-Profit Altcoins

According to Santiment data, popular altcoins such as Bitcoin, Ethereum, Toncoin, and Dogecoin currently exhibit high risk and high potential rewards. Toncoin's MVRV ratio has surged beyond the average range, indicating significant overvaluation.

Low-Risk, Low-Profit Altcoins

Conversely, altcoins like XRP, ADA, LINK, MATIC, SHIB, and UNI are considered low-risk but also low-profit investments. Their MVRV ratios remain below average, suggesting potential undervaluation.

Market Outlook

Santiment predicts that low-risk altcoins that have been underperforming may have a greater chance of garnering significant returns. These tokens are currently consolidating below the average range, awaiting a bullish catalyst.

Bitcoin's Role

It is anticipated that a rise in Bitcoin's price above its current all-time high of $73,750 will provide a positive sentiment that could propel these altcoins out of their bearish trend and into a strong uptrend.