Algorand Price Correlation

    Loading...

    In this dashboard, we want to find out:

    • What is more correlated with Algorand price.
    • Is it crypto market or network usage?
    • What about other networks like Solana?

    Method:

    • Algo and Sol daily prices in the past 5 months are compared to:
      • Bitcoin daily price
      • Ethereum daily price
      • Network daily transactions
      • Daily transfers of Algo/Sol on each network
    • Algo daily price is calculated by averaging hourly price of Algo from algorand.prices_swap table.
    • BTC, ETH and SOL daily prices are calculated by averaging their hourly prices from ethereum.core.fact_hourly_token_prices table.
    • The calculations of daily transfers and transactions of each network are extracted from their transfers and transactions table.

    We can see the daily price of Algorand with BTC and ETH in the following charts:

    We can see the daily price of Algorand with daily Algo Transfers and daily network transactions in the following charts:

    • The strong correlation between ALGO and BTC/ETH is obvious in the charts.
    • Daily network transactions seems correlated with Algo price between March, 30th to May, 14th. and in other time periods it is less correlated.
    • It seems that daily Algo Transfers doesn't have sensible correlation with Algo price
    Loading...
    Loading...
    Loading...
    Loading...
    Loading...
    Loading...
    Loading...
    Loading...
    Loading...
    db_img
    • Algo price has a very strong correlation with BTC and ETH price.
    • Algo price has a strong correlation with daily transactions.
    • Algo price has a weak correlation with Algo transfers.

    We can see the calculated correlations in the following table:

    Now, lets do the same thing for Solana, we can see the daily price of Solana with BTC and ETH in the following charts:

    • The strong correlation between Solana and BTC/ETH is also obvious in these charts.

    We can see the daily price of Solana with daily Solana Transfers and daily network transactions in the following charts:

    • Daily SOL transfers seems in most of the times seems to have a positive correlation with SOL price.
    • Daily transactions show strong positive correlation with SOL price in some periods an strong negative correlation in some other periods. so, it seems that these two are not correlated.

    We can see the calculated correlations in the following table:

    • Solana price has a very strong correlation with BTC and ETH price.
    • Solana price has a moderate correlation with daily SOL transfers.
    • Solana price has no correlation with volume of daily transactions.

    Conclusion

    In the past 5 months:
    • Both Algo and Solana prices have a very strong positive correlation with BTC and ETH, which means their price is correlated with market conditions.
    • The Algo price has a strong correlation with daily Algo transactions volume. but Solana price does not have any correlation with its network daily transactions volume.
    • Solana price has more correlation with Solana transfers than algo price has with Algo transfers.
    • Algo price is more correlated with crypto market than network usage.
    • Algo price has a stronger correlation with network usage than other networks like Solana.