top cryptocurrencies show great correlation with each otherWhile 2018 is known for bringing reds for every cryptocurrency, there is it also increased the correlation of various leading crypto tokens. Recent statistics have shown that 10 out of the 15 leading cryptocurrencies show a correlation of almost sixty-five percent (65%) while five pairs show a correlation of greater than eighty percent (80%).
Researchers have discovered that leading tokens including Bitcoin, Bitcoin Cash, Ethereum, Ripple, EOS, Stellar etc. have a similar price action and the resemblance is greater than 60% in each case. Tron was the only Cryptocurrency that had less than fifty percent (50%) resemblance with any other crypto market.
The analysis showed that blockchains that used Proof of Work had a different pattern than those that used alternative consensus mechanisms.
Even so, the statistics showed that this correlation increased with the passage of time. In fact, for most cryptocurrencies, the correlation almost doubled in 2018. Bitcoin’s average correlation increased by one hundred and fifty percent (150%), Ethereum’s by one hundred and fifty-four percent (154%) while Ripple’s average correlation increased by almost two hundred and twenty (220%) which is the highest for any token.
Similarly, the trading volumes of these tokens began to show a correlation between them as well. Bitcoin and Ethereum’s average volume correlation increased to almost nineteen percent (19%) while Ripples’s average volume correlation increased fourteen percent (14%).
This indicates that the crypto sphere has united quite a bit and that factors that affect any crypto token also have an effect on various other crypto tokens. This means that any regulation or scam issue that may surround one token would also have an adverse effect on others too. Similarly, if any token is going green may also mean that others are about to go green too.
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