Undervalued Digital Asset

Definition ∞ Undervalued digital asset refers to a cryptocurrency or token whose current market price is perceived to be lower than its intrinsic or fundamental value. This assessment is typically based on factors such as strong technology, robust network adoption, active development, or significant utility within its ecosystem. Such assets are considered to have substantial growth potential.
Context ∞ Crypto news often identifies and discusses undervalued digital assets, presenting them as potential investment opportunities. Analysts use various fundamental and on-chain metrics to support claims of undervaluation, contrasting current prices with projected utility or network growth. Understanding this concept helps investors seek assets with strong long-term prospects.