In a new post on Site X, Santiment, a blockchain analytics company, has revealed that altcoins have generally been generating high returns recently, based on the MVRV ratio.

The market realized value ratio (MVRV) is a metric that tracks the relationship between the market and realized value of any #cryptocurrency. Realized value here refers to the capitalization model, which assumes that the real value of a token in circulation is not the current spot price of the asset, but the value at the time it was last moved on the #blockchain. See also: By the numbers: how many bitcoins will a whale buy in 2024?
The token was most likely last traded when it last changed hands, so its previous price is the current base price. Thus, the realized price is essentially the cost basis in the market for each investor.
The MVRV ratio compares the market value of an asset (i. e. the total value currently held by an investor) to the realized value (i. e. the value invested in the coin by the holder as a whole) and thus gives an idea of the rate of return for the average cryptocurrency investor.
Historically, investors with large gains (i. e. , high MVRV ratios) signal that their assets are overheating, while investors with losses indicate overbought conditions. Based on this historical pattern, Santiment has identified "opportunity zones" and "danger zones" in the market.
The chart below shows the different timeframes and indicators of divergence in MVRV ratios of different altcoins:
According to the Santimento model, a divergence in MVRV ratio (from the normal value of 0%) to -1 indicates that the asset is in the danger zone where traders are making high profits. The chart shows that most of the #altcoins are in this zone.
With the exception of some lagging altcoins, most cryptocurrency projects are profitable in the medium to long term for the average wallet," explains Santimento. In other words, our model shows quite a few "overbought" signals.

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Salvadoran President #NayibBukele , known for his unorthodox approach to governing the country, has faced long-standing criticism for his economic policies, particularly for adopting #bitcoin☀️ as legal tender. However, it appears that his strategy is bearing fruit – Salvadoran bonds are rising significantly.
Unexpected Bond Growth
According to data from Bloomberg, Salvadoran bonds have seen an upward trend after the country approached holders of nine dollar-denominated transactions with an offer to buy back their notes. In simpler terms, the Salvadoran government offered investors the opportunity to sell bonds back for cash, a common step in restructuring national debts.
In a statement on Friday, El Salvador announced it would issue new #Bonds part of this transaction. This move aims to save costs and support the country's long-term financial stability. Although the country has often been criticized for its financial decisions in the past, today investors are beginning to see El Salvador as an attractive investment opportunity.
An Attractive High-Risk Investment
James Bosworth, founder of Hxagon, a company specializing in political risk analysis, explained to Decrypt that Salvadoran bonds are appealing to investors primarily due to their high yields. “El Salvador represents a risky investment, but that also means high reward. Investors like to profit from risk,” he said.
Bosworth adds that Bukele has the ability to secure congressional support for budgets that ensure El Salvador's financial stability. It’s this combination of political strength and economic flexibility that makes investing in Salvadoran bonds an interesting opportunity, despite the International Monetary Fund (IMF) repeatedly opposing Bukele’s actions, particularly his Bitcoin-related policies.
Controversial Bitcoin as Legal Tender
One of the main reasons for IMF's criticism of Bukele is his 2021 decision to make Bitcoin legal tender alongside the US dollar. This move caused much controversy, as all businesses in the country equipped with the necessary technology must accept Bitcoin.
Despite this criticism, Bukele continues to push his cryptocurrency strategy, even as the IMF continues to call for El Salvador to reduce its reliance on Bitcoin and mitigate the public sector’s exposure to the #cryptocurrency.
Could Bukele Be on the Right Track?
Although many international institutions criticize Bukele, the current rise in bonds suggests that his strategy may be yielding results. El Salvador is trying to negotiate with the IMF to improve economic growth, but the president's unconventional approach remains a topic of discussion.

What do you think about this situation? Is El Salvador on the right track, or are the critics justified? Share your opinions in the comments!
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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“