BitCoin’s Alt Coin Influence In Decline, Research Finds

BitCoin’s Alt Coin Influence In Decline, Research Finds

In a new piece of research uncovered by the research arm of Binance, it was highlighted that during the recent surge in all crypto’s price less correlation was seen between bitcoin and altcoins.

During the last 3 months or so, we have witnessed increases in value across the board, which saw bitcoin increase by 300%, soaring past the $10,000 mark.  It has always been the case that when this happens other alt-coins follow suit and increase in value at a similar rate and indeed, it was.

Bitcoin to AltCoin Average Correlation Drops

Overall, the recent period of trading was the most lucrative since 2017 and the 3rd best quarter since as far back as 2014.  However, this time around it has become apparent that the influence from the top coin on the market was not as big a factor as it has been in the past, according to Binance research.

They discovered, “Correlations declined between Bitcoin and altcoins, with a decrease in average correlation of -0.11. As indicated in the previous section, the overall market capitalization rose by 139%, whereas altcoin aggregated market capitalization (including stablecoins) increased by ‘just’ 71% over the same period.”

New Correlations to Consider.

However, that is not that was discovered and it emerged that other factors have been in play over the second quarter of this year’s trading. For example, what was described as “idiosyncratic factors”, i.e. a buzz around coins due to their name being in the news or holding special events.

This was attributed to an increase in value in coins such as Binance’s own native, Binance Coin (BNB), which was ever-popular in the news, as well as Chainlink, who launched deals with Google and Matic. While Bitcoin SV, which was delisted from various exchange platforms, saw peculiar price fluctuation.

As well as this, coins that were similar in their nature and functions saw correlations trends matching with one another. Many proof-of-work tokens “exhibited lower average correlations with other cryptoassets”, this affected coins such as Bitcoin Cash, Dogecoin, Ethereum Classic, Bitcoin Gold. While privacy tokens and coins with similar functionality, Ripple and Stellar Lumens, both showed increase correlations with one another.

Very interesting trends there for traders from Binance so we hope you had a pen and paper ready.

Register for Latest Updates & News

We respect your email privacy

Subscribe now to recieve exclusive updates and offers!

Recently Similar News

Latest Guides

Latest News

1xBit Guide: Crypto Sportsbook & Casino

The casino and sportsbook industry continues to witness an increase in the number of platforms within the space. This creates a challenge of identifying the best and most reliable sportsbooks that will offer you the most impressive services. In this guide, 1xBit shall be reviewed in terms of its service offerings and unique features that […]

11 January, 2022

XBE Community Launches a $500k Bug Bounty

Decentralized technology is built to attract the smartest and brightest brains from all over the world to work towards a common goal: free and fair financial systems. Despite the uncertainties surrounding future laws, DeFi protocols are rapidly adapting and growing to provide new ways for individuals to obtain more value from their money. And this […]

28 December, 2021

11 Biggest Sponsorships Deals for the Crypto Market in 2022

The global sports industry is looking to revamp its activities and recover from the after-shocks of the COVID-19 pandemic. Cryptocurrency platforms on the other hand have enjoyed immense growth and are searching for big platforms that can provide better brand visibility. That’s where sports and crypto make a perfect match with many global sports organizations […]

1 December, 2021

ChangeNOW Unveils a New Cashback Feature

ChangeNow offers crypto users smooth exchanges and doesn’t stop there. The exchange platform provides registered users a chance to profit from crypto swaps with cashback in NOW tokens through the ChangeNOW website. The cryptocurrency exchange and processing platform offer you an effortless way to turn your traffic into profit and boost your crypto journey. The […]

15 November, 2021

Celsius Casino is Raising the Temperatures with a Voluminous Game Lobby

Celsius Casino has become a go-to gaming destination for casino fans looking for an action-packed online gaming platform. The online casino boasts a robust game catalogue with over 4,000 games. The extensive game portfolio caters to Slots, Table Games, and Live Casino fanatics and is powered by well-known providers such as Evolution Gaming, NetEnt, and […]

9 November, 2021

ChangeNOW Has Announced the Release of its Own Digital Wallet

Limitless and swift crypto exchange platform ChangeNOW has released its own non-custodial NOW Wallet, facilitating fiat to crypto purchases and reliable crypto transactions from the comfort of a mobile phone. NOW Wallet is available in beta version for both iOS and Android devices and allows users to transact with over 20,000 currency pairs, regardless of […]

29 October, 2021

BitPanda Enhances Its BEST Rewards Programme

The EU-based cryptocurrency exchange, BitPanda, has improved its loyalty programme, BEST Rewards. It is now providing owners of its BitPanda EcoSystem Token (BEST) an additional 12% in potential revenue each year. Every registered BitPanda user who has BEST in his or her wallet and carries out at least one monthly trade will be eligible for […]

25 October, 2021

ChangeNOW’s AML Action Lead To The Return Of $15M COMP

Earlier this week, ChangeNOW announced that it was able to identify and return 45,505 COMP back to Compound. The estimated value of this recovery is around the $15m mark. This remarkable achievement is further proof of the effectiveness of the exchange’s Anti-Money Laundering (AML) procedures. In an announcement made on ChangeNOW’s website, the company provided […]

6 October, 2021