Description of work

In this bounty we want to examine the price correlation of ALGO. To do this, I consider and compare several different criteria. The criteria we want to examine include the following:

• Compare ALGO price with ETC and BTC price
• Compare ALGO price with the number of transactions in Algorand network
• Compare ALGO price with ALGO transfers
• Compare to other networks such as Solana

Note

• We use the [algorand], [ethereum.core], [thorchain] schemas, [algorand.prices_swap] table for ALGO price, [ethereum.core.fact_hourly_token_prices] table for ETH price, [thorchain.prices] table for BTC price, [algorand.transactions] table for number of transactions, [payment_transaction] table for ALGO transfers

1 ---> Compare ALGO price with ETC and BTC price

To address this, we obtain and compare:

• ETH price from the `[ethereum.core.fact_hourly_token_prices] table on a daily basis over the last six months
• BTC price from the [thorchain.prices] table on a daily basis over the last six months
• ALGO price from the [algorand.prices_swap] table on a daily basis over the last six months

2 ---> Compare ALGO price with the number of transactions in Algorand network

To address this section, we obtain and compare:

• ALGO price from the [algorand.prices_swap] table on a daily basis in the last six months
• Number of Transactions from the [algorand.transactions] table on a daily basis in the last six months

3 ---> Compare ALGO price with ALGO transfers

To address this section, we obtain and compare:

• ALGO price from the [algorand.prices_swap] table on a daily basis in the last six months
• ALGO transfer from the [algorand.payment_transaction] table on a daily basis in the last six months

According to the results, it is clear that:

• Comparing BTC price, ETH price, number of transactions and ALGO transfers with ALGO price, it is clear that the biggest impact on ALGO price is related to BTC and ETH price
• It can be seen that with the decrease or increase of BTC and ETH prices, the price of ALGO should also increase and decrease
• Regarding the Number of transactions and ALGO transfers, it can be seen that no correlation can be found with the ALGO price, because in some cases the ALGO price has increased and decreased significantly, but the number of ALGO transactions or transfers has not changed significantly or vice versa -So it can be concluded that there is a correlation between the price of ALGO and the price of ETH and BTC. Also, according to BTC DOMINANCE, the price of BTC has the most impact on ALGO price, and among altcoins, ETH has the most impact on ALGO price
• A noteworthy point in comparing the price of ETH and BTC with ALGO is related to the sharp growth of ALGO price on Jan 14, 2022 and Jan 18, 2022. On these dates, the price of BTC and ETH is declining. After Jun 18, 2022, the price of BTC and ETH have had a 17% price reduction until Jan 22, 2022, which has also caused a sharp drop in the price of ALGO and prevented its growth.

4 ---> Compare to other networks such as Solana

In this section, we examine the SOL price with the number of daily transactions and the BTC price in the last 6 months, and we want to see the effect of the BTC price on the SOL and conclude whether the price of altcoins correlates with the BTC price or not.

According to the results, it is clear that:

• It can be seen that in the Solana network, the BTC price has the greatest effect on the SOL price, and the SOL price has a correlation with the BTC price, and the number of transactions has no specific correlation with the SOL price.

Conclusion

According to the analysis, comparing the price of ALGO with BTC and ETH and the number of transactions and ALGO transfers and comparing the price of SOL with BTC and the number of transactions, it is clear that the correlation between BTC price and altcoins can be seen and with increasing BTC price the price of altcoins increases. Conversely, it is also observed that even with a positive fund for an altcoin and a sharp increase in price, the price of BTC still affects it, and this correlation changes the price of altcoins.