Question:

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? How does this compare to other networks such as Solana? Note your findings and anything else that may be interesting in relation to Algorand's price movement!

Approach

The price of ALGO has been estimated in this essay. After that, the ALGO price drops and the main reasons of this event identified based on the price of crypto universe leader currencies like BTC and ETH or the usage of blockchain.

The methodology of this essay are as below:

1. ALGO token analyze

   
   from flipside_prod_db.algorand.prices_swap where ASSET_ID=0 -- price analysis

           from flipside_prod_db.algorand.transfers -- ALGO transfer volume
   
           from flipside_prod_db.algorand.transactions  -- Number of transactions and users of Algorand
   

2. BTC and ETH price

           from ethereum.core.fact_hourly_token_prices and SYMBOL='WETH' or SYMBOL='WBTC'
   

3. SOL analysis

   \

           from ethereum.core.fact_hourly_token_prices where TOKEN_ADDRESS=lower('0xd31a59c85ae9d8edefec411d448f90841571b89c')  -- price analysis
   
           from solana.core.fact_transfers -- SOL transfer volume
   
           from solana.core.fact_transactions  -- Number of transactions and users of Solana
   

4. Time period

            BLOCK_TIMESTAMP>=CURRENT_DATE-90
   
   
   
              
   

Results

ALGO price analysis with Algorand application

The key findings related to the price correlation of ALGO have been drawn as below:

1. The price of ALGO token dropped according to the price drop of BTC and ETH.
2. The application of Algorand ecosystem did not changed that much to affected the ALGO price.
3. From the ALGO token transfer volume point of view, we could seen that this metric increased despite the drop of ALGO price.
4. We can said that the ALGO price strongly correlated to the market condition and leaders of crypto universe.

SOL price analysis with Solana blockchian application

The price analysis of SOL and the parameters affected it displayed in this section. The key findings of this part and SOL price have been listed as below:

1. The price structure of SOL exactly follows the schematic of price for BTC and ETH specially look at the price on May 12 (The worst day of market in the recent date).
2. The number of unique users that executed transactions on Solana increased over time but the price of SOL decreased in that time period.
3. The volume of SOL token transfer experienced highest value on May 19th with 20 million SOL but this occasion did not changed the SOL price.
4. We can concluded that the price of SOL depend on the general market condition strongly.