The reason its undervalue is because there are no other place to spend other than specific gambling site, and with a lot of coins with the same purpose then the alt coin will slowly losing its transaction volume due to the diversify, when the gambler see the coin that they won keep on decreasing they will find other coin to used, its better just to used bitcoin for now because it can be used in alot of place and the price is more stable than other crypto
Not sure I agree there. Of course bitcoin has more uses, but at gambling coins have a use, which is more than can be said for a big chunk of crypto projects.