The crypto bear run has significantly eroded the market capitalization of the entire crypto market. Cryptos that were in December last year valued at billions of dollars are now worth a few hundreds of millions of even less. But this erosion of value can actually be deceptive. That’s because even though the market has been crashing hard all through the year, individual projects have been doing big things that add to their true valuations.
In essence, this drop has created a massive mismatch between most cryptos’ prices and their real value. However, this is not to say that every crypto out thereis undervalued at current prices.
There are lots of low-quality cryptos that were way overvalued and are going back to their true value, and that’s zero. But, for those that have been working on improving themselves irrespective of the bear market, they will probably bounce back bigger than they were at their peak in 2017. One crypto that is well positioned for such a historic bounce in value is IOTA (MIOTA).
Compared to 2017 when it peaked at over $5, IOTA (MIOTA) is far much better. For instance, the IOTA team has made progress in developing the IOTA wallet. In 2017, there were complaints about the IOTA (MIOTA) wallet not working properly, and people losing money. IOTA has since resolved this problem and is very close to releasing the trinity wallet. This wallet is not only easy to use but will also be one of the most secure, once it goes live. This means that comparatively, IOTA is technically superior when it’s valued at $0.22, than when it was worth $5. That’s a clear mismatch between its valueand price, and markets always correct such inefficiencies.
On top of that, IOTA (MIOTA) has also made major progress towards decentralization. Fully decentralized projects hold more value in the long run because they are more secure. Though IOTA (MIOTA) has a COO, which makes it centralized, the team has made much progress in moving away from the COO. A few weeks ago, the IOTA foundation presented a series of options they are exploring to get the IOTA tangle fullydecentralized, while at the same time maintaining its security. This is a huge step that takes IOTA (MIOTA) a step closer to full decentralization, and makes it way more valuable than it was in 2017 when such ideas had not fully formed.
There is also the big issue of adoption. No matter how good a product is, if no one is using it, it’s useless. Using this analogy, IOTA’s worth is much higher than it was in 2017. Unlike in 2017, IOTA has major corporations such as Volkswagen, Audi, and Fujitsu looking to work with it. It has also been adopted by cities such as Taiwan andis even part of an advisory group on blockchain for the U.K government.
With such high profile adoptions, there is no doubt that IOTA (MIOTA) is worth way more than it was last year at an intrinsic level. The moment the market turns bullish, this is one of the cryptos that stands to gain the most in terms of value growth. It could be very close to the bottom, since, with its strong fundamentals, IOTA (MIOTA) is not going to zero.