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ETH Saw The Most Correlation Compared to Most Cryptocurrencies in 2019

 
ETH Saw The Most Correlation Compared to Most Cryptocurrencies in 2019
Ethereum / Breaking News
  • ETH was the cryptocurrency that had the most correlation compared to the rest of the market over the past year.
  • The second-biggest digital currency had an average correlation rate of 0.69.
  • The report further looks into the top twenty digital currencies in the industry.

According to recent research, ETH was the cryptocurrency that had the most correlation compared to the rest of the market over the past year.

In a report published earlier this week by the research side of the Binance platform, it indicates that over 2019, the second-biggest digital currency had an average correlation rate of 0.69. The report further looks into the top twenty virtual currencies in the industry and compares the correlation data as such. 

“Ether (ETH) is the highest correlated asset. With an average correlation coefficient of 0.69 throughout 2019, it is consistently among the most correlated assets. The coefficient started at 0.69 in Q1 and rose to 0.72 in Q4 (Q2: 0.65; Q3: 0.74).”

According to the research, ETH was significantly more correlated in the second half of the year in comparison to the first half of 2019. It is highlighted that blockchains like Ethereum and EOS typically show more correlation to each other than different non-programmable assets. 

An interesting fact is that for Binance listed cryptocurrencies, there is a higher correlation compared to assets that are not on the platform. According to the company's explanation, there are also claims that Binance’s own listed cryptocurrency, Binance Coin, is one that experiences the highest returns on investment for traders and investors...

The correlation between crypto-assets is an observation that is widely looked into. Especially with bitcoin and traditional assets. New data indicates BTC isn't as correlated as its so-called counterpart, gold however. 

It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

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