A new report from Binance Research discusses the levels of correlation between different cryptocurrencies, as well as their market performance, during 2019.
Binance Research, the market research and analysis arm of Binance, released a new report that looked into how much Bitcoin (BTC) has increased its market dominance, as well as how correlated cryptocurrencies are to each other, and why BNB is the best-performing asset of 2019.
According to the “Annual Crypto-Correlations Review,” which analyzed potential similarities between valuations of various cryptoassets, BNB value increased by 128%, highest among the 10 biggest cryptoassets by median market capitalization over 2019. BTC was the second best-performing asset in this group, with 87% growth.
Bitcoin also grew its market dominance last year, with a strong climb from around 50% to begin 2019 to 68% by the end of the year.
On the correlations front, Binance Research found that Ethereum (ETH) is the highest correlated asset, with an average correlation coefficient of 0.69 throughout 2019. Meanwhile, the lowest correlated asset was Cosmos (ATOM), with a median annual correlation coefficient of 0.31.
“The median correlation between most large cryptoassets slightly declined over the fourth quarter of 2019. This trend upholds the annual median correlation, which is lower than in Q3 or Q4. Nonetheless, cryptoassets remained highly correlated with each other in 2019,” according to Binance Research.
Here are other findings from the recent report.
* Besides ETH, BTC was strongest correlated with Bitcoin Cash (BCH) and Monero (XMR).
* Programmable blockchains, such as NEO, ETH, and EOS often show higher correlations with each other than with non-programmable assets.
* Assets listed on Binance displayed higher correlations compared to the cryptoassets not listed on Binance.
* Assets might show stronger correlations with each other during adverse price movements.
About Binance Research
Binance Research provides professional, data-driven insights and analysis for investors in the crypto space to increase the level of transparency and improve the quality of information within the current crypto ecosystem. The team consists of professionals with experience in blockchain engineering, investment banking, strategy consulting, academic research, and data science. For more information, visit: https://research.binance.com/