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Algo-109.Algorand Price Correlation

-- Q109. Is the price of Algorand more closely correlated with the crypto market, -- and assets such as BTC or ETH, or is it more correlated with network usage such as number of transactions or ALGO transfers?

Methodology

We are using goBTC and goETH as proxy for BTC and ETH on Algo.
Find the token prices for each token averaged per day from flipside_prod_db.algorand.prices_swap
Also find the change in percentage of price per day.

Is the price of Algorand more closely correlated with the crypto market and assets such as BTC or ETH

Yes as clearly seen from the price chart and the change in percentage of price daily, we see that price of ALGO is directly co-related to the price of BTC and ETH.
On all the days of price change, Algo has been inline with BTC and ETH with the negative or positive change, however the magnitude of change for Algo is a lot more than BTC and ETH.

Is it more correlated with network usage such as number of transactions or ALGO transfers?

Looking at the transactions and transfers below, there doesn't seem to be a direct co-relation with either on the price of ALGO.
Days which see higher transfers or transactions not necessarily see positive change in ALGO value.