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Binance Research Studies Bitcoin Dominance, Altcoin Correlations in Q3


Binance Research, the market research and analysis arm of Binance, released a new report that studied the correlations between Bitcoin, Ethereum, and other cryptocurrencies during the third quarter of 2019, in the context of the continued dominance of Bitcoin in market capitalization and trading activity.

According to the 2019 Q3 Crypto-Correlations Review,” which analyzed potential similarities between valuations of various cryptoassets, Bitcoin marketcap dominance kept increasing, reaching temporarily new highs above 70%. Conversely, Bitcoin trading dominance appears to be at local highs, with more than 40% of the trading activity on Binance being on BTC against stablecoins pairs. In comparison, BTC trading dominance fluctuated around 15-25% for the first half of 2019.

“The third quarter of 2019 exhibited adverse price movements, breaking the two consecutive quarterly price gains in Q1 and Q2. In Q3, Bitcoin price dropped by nearly -30%, closing on September 30th at around $8,000. Meanwhile, large marketcap altcoins all displayed negative performances ranging from -38% to -60%,” Binance Research noted.

Meanwhile, the top large-cap assets displayed higher positive correlations in the recently concluded quarter, compared with the second quarter of 2019. Here are some of the findings from the Binance Research report:

  • Ethereum (ETH) became the most correlated cryptoasset in the ecosystem, conceivably turning it into one of its principal benchmarks.

  • Proof of Work assets tended to exhibit a more substantial correlation with each other.

  • Privacy cryptoassets Dash (DASH), ZCoin (ZEC), and Monero (XMR) displayed higher correlations than with other cryptoassets.

  • Programmable blockchains (e.g., NEO, Ethereum, EOS) exhibited, on average, higher correlations with each other than with non-programmable assets. 

  • Assets listed on Binance displayed greater correlations than with the cryptoassets not listed on Binance. 

Read the full report here