Binance Research: Ethereum has the highest correlation with the rest of the market

A new report by the research division of the Binance exchange says that the general trend to increase the correlation between the prices of various crypto assets is continuing.

Ethereum has the closest interdependence with the rest of the market - the average ETH correlation coefficient over the past year was 0.69. This indicator is the lowest for Cosmos (0.31), Chainlink and Tezos (0.32 and 0.4, respectively).

Researchers emphasized that the correlation between assets is growing most in the face of a bear market.

Among the top ten most capitalized crypto assets, the second place in terms of price growth since the beginning of the year was taken by bitcoin (+ 86.78%), losing to Binance Coin (+ 127.56%).

During 2019, the index of dominance of the first cryptocurrency gradually increased.

Thus, the “altcoin season” expected by many last year did not take place - the share of the first cryptocurrency on the market remains high.

Earlier, The Block analyst Larry Chermak expressed the view that the excessive interdependence between assets creates obstacles to the effective diversification of the investment portfolio.