Introduction and methods

Algorand is a decentralized blockchain technology network characterised to be a scalable, secure, and decentralized digital currency platform. In the recent months, Algorand capted a lot of interest of different users and investors. Three reasons for the surging interest in Algorand are its capacity as a platform for stablecoins as they become increasingly integrated into traditional financial channels, its expansion into DeFi through partnerships and DApp creation, and the ability to earn a yield by simply holding tokens in a network wallet.

In this dashboard, we are gonna find any correlation between Algorand price and crypto market prices or assets like BTC or ETH, as well as between its price and its number of transactions, transfers or swaps. Finally, we will compare the results with the Osmosis network.

Results

Looking at the ALGO vs assets prices, we can see how in both charts, BTC and ETH ones the trend looks similar. For the first case, the correlation is more than 0.9. The same occurs with the second case.

On the other hand, looking at the cryptomarket price chart (considering cryptomarket as the rest of the tokens. In this case the correlation is even higher. Then, we can assume that the Algorand price is strongly positive correlated with the cryptomarket and asset prices.

Taking a look at the correlation between Algorand price and activity volume, we can see in the first chart how it is not exactly correlated with the Algorand transfers. In this case, during the last months of 2021, the price was not correlated with the trasnfers. However, since 2022, and caused by the bear cryptomarket, both trasnfers and ALGO price decreased considerably and then, a correlation appeared. The global correlation is 0.365.

For Algorand transactions something similar occurs. In this case the correlation is also positive and the number is similar: 0.354.

Finally, if we take a look at the Algorand swaps, we can see that the swaps remained constant voer time while the ALgorand price went down and then, we can assume that the correlation could be not fine at all. In fact, the correlation is around 0.05.

Then, after the Algorand price correlation study, we can determine that it is more correlated with the cryptomarket and asset prices than the own Algorand activity.

Finally, comparing Algorand price correlation against Osmosis price correlation, we can see how in the first case, it is more correlated to the crypto prices as said before. However, in the case of Osmosis, the correlation is splitted between asset prices and activity conditions. In all the cases, the correlations looks moderate and positive.

Key insights

• The ALGO price is strongly positive correlated with cryptomarket prices and asset prices like BTC and ETH.
• There is a positive correlation between ALGO prices and transfer and transaction activity but in a moderate state.
• There is no correlation between ALGO price and swaps.
• The OSMO price is moderatly correlated with cryptomarket and asset prices. The same occurred with its network activity.