The crypto market is generally tied to Bitcoin, with the other cryptocurrencies rising as it rises and falling with it. However, over the last two months, several altcoins, especially XRP and BNB, have seen notable surges and decreased their correlation with Bitcoin.
These cryptocurrencies are now finding success on their own, leaving many wondering if we’re entering a new era in the crypto industry.
CryptoBusy (@CryptoBusy), a well-known YouTuber with a huge following on X, shared this surprising development, saying, “Bitcoin has de-correlated with Altcoins in the last 60 days! XRP and BNB have registered the largest drop in correlation. While DOGE and ADA have remained mostly correlated.”
Surprising Correlation Decline for XRP and BNB
CryptoBusy sourced this information from Kaiko, a leading market analytic tool. He emphasized the correlation rates of more than five leading altcoins with Bitcoin (BTC).
The data shows that XRP’s correlation with BTC’s price movements decreased from over 70% to nearly 40% during the specified timeframe, This represents XRP’s most significant decline in correlation with Bitcoin.
This drastic decline has ranked XRP as the altcoin with the highest degree of independence in price action among the prominent ones.
Kaiko’s data also revealed a notable shift in the relationship between BNB and BTC. BNB experienced a significant decline in its price correlation with BTC, falling nearly 20%. It currently has a 60% price correlation with BTC and is second to XRP regarding the magnitude of its decline.
XRP and BNB Battle for the Highest Market Cap
As XRP and Binance Coin (BNB) strive to decouple from Bitcoin, the battle for supremacy in the market ranking is also live between them. Out of the two top coins, XRP has been the best performer in recent months.
On July 13, XRP surpassed BNB in market cap when it reached $0.93 following a favorable ruling in the XRP lawsuit. On that day, XRP’s market cap surged to $42.842 billion, while BNB’s market cap remained at $39.973 billion. This victory was short-lived, as XRP relinquished that position in the subsequent price correction.
In its recent resurgence, XRP has been advancing in market cap, closing the gap with BNB. XRP surpassed BNB again with the surge from the beginning of this month but could maintain the position.
Ranked by market cap, XRP is in 5th place at $0.609 with a market cap of $32.77 billion. BNB is 4th with a market cap of $34.84 billion and trading at $229.83. With bullish predictions, it might soon surpass Binance Coin for good.
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