Institutional class research division of cryptographic Binance exchange takes a close look at the correlation between the upper 30 cryptocurrencies by market capitalization.
Binance Research analyzed the crypto correlation with the March 31, 2018 and March 31, 2019 The report notes that the price correlation between large-cap digital assets are very high and on the rise, which means that in general, most of the coins rise and fall in unison.
This may be due to an increase in the adoption of stablecoins and the fact that the cryptographic exchanges are increasingly offering various cryptographic pair instead of just pairing each coin with Bitcoin.
Despite the high correlation in the majority of cryptographic tools, the report notes a few exceptions, noting that Dogecoin, Tezos and XRP «showed the lowest correlation with other digital assets through this annual period."
Here's a look at all the correlations of the 30 best cryptographic means. The higher the number, the stronger the correlation.
Binance study: weekly return correlation matrix
Report also determines that the long-term analysis showed XRP digital asset is less correlated with Bitcoin, than previously thought.
"On the basis of weekly downloads, big cryptoassets, such as Bitcoin and Ethereum shows the highest correlation, but Ripple shows a lower correlation than in the previous report, and with the & # 39 is no exception, as the best diversifier among a cover digital asset market higher 3000000000 $. "
In addition, the study shows a strong correlation between the XRP and stellar lumens.
"While Stellar was originally built on the Ripple protocol, the code was forked and quickly rebuilt. To date, Stellar Ripple code and not rely on the same common core. Nevertheless, these two digital assets still have a number of features in common, as they both seek to change the global remittance industry ".
You can check out the full report here.
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