Which Cryptocurrency Was Most Correlated to Rest of the Crypto Market In 2019?

By Drishti Bhagat   Jan 23, 2020 1 Min Read



reportpublished by research projections from Binance released figures which amounted to ETH (Ether), averaging a correlation coefficient of 0.69. The research showed the following comparative values; “Ether 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).” Findings from the report show that Ether was relatively less correlated in the earlier half of 2019. The incline of its correlation began in the second half.


What was most interesting is that research shows that ‘programmable blockchains,’ for instance, Ethereum, NEO, and EOS showed moderately higher correlations in comparison to non–programmable assets. The most significant contrast was amongst those assets with the lowest correlation, namely Cosmos, standing at a correlation of 0.31. To add are Chainlink (LINK) and Tezos (XTZ) at coefficients of 0.32 and 0.4, respectively.


The “Binance Effect,” which was highlighted in the article, reveals that cryptos listed on Binance resembled higher correlations than those that are not listed. Additionally, the relationship between BTC and well- known commodities such as Gold is debatable, but recent data reveals that it is significantly less correlated than popular belief. 



Image via Shutterstock 

About the author

Drishti Bhagat   
Drishti is a first-year Marketing Executive at Blockchain. News, managing all the social media channels as well as the external creatives published. She has recently completed an MSc in Digital and Strategic Marketing and priorly holds a BA (Bachelors) in Business Administration. Her interest in the financial technology industry, particularly Blockchain applications, has stemmed all throughout her academic and professional career.

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