The second most valuable digital asset by market capitalization became Ethereum (ETH) in 2019, according to Binance Research, the new research will be 2019.
They said that last year ETH showed an “average average correlation” with other digital assets, with an average correlation coefficient of 0.69.
For the purposes of the study, activities with a correlation above 0.5 were assigned a strong positive relationship, while assets with a correlation of 0.5 were considered to have a strong negative relationship. The higher the number, the stronger the correlation.
Cardano (ADA) and EOS followed ETH, with correlation coefficients of 0.65 and 0.66, respectively. This is compared to a correlation coefficient of 0.31 against Cosmos (ATOM), which was the lowest correlation digital asset of the year, followed by a network link (LINK) and tezos (XTZ).
Overall, Binance concluded that all cryptocurrency systems continue to be “highly correlated” with what many cryptocurrency analysts have observed over the past few years. However, the correlation was “slightly reduced” in the fourth quarter of 2019, per report.