Methodology

First we will see the correlation of ALGO price with BTC price, ETH price, number of transactions on the Algorand network and number of ALGO transfers on hourly basis.

Then we will see the correlation of ETH price with BTC price, number of transactions on the Ethereum network and number of ETH transfers on hourly basis.

Then we will see the correlation of SOL price with BTC price, ETH price, number of transactions on the Solana network and number of SOL transfers on hourly basis.

Finally we will repeat the above steps for daily, weekly and monthly data.

From the above tables, we can see that ALGO price is highly correlated with BTC price and ETH price on all time frames.

On hourly timeframe, ALGO price is moderately correlated with number of transactions on the Algorand network and number of ALGO transfers.

However as we move from smaller timeframes to larger timeframes (hourly to monthly), the correlation of ALGO price to number of transactions on the Algorand network and number of ALGO transfers keeps on increasing.

The situation is the same for correlation of ETH price with BTC price and number of transactions on the Ethereum network and number of ETH transfers as well as correlation of SOL price with BTC price, ETH price, number of transactions on the Solana network and number of SOL transfers.

Overall ALGO price and SOL price are more correlated to BTC price and ETH price than to the respective network activities.

Similarly ETH price is also more correlated to BTC price that to the network activity on Ethereum.

Conclusion

• The price of Algorand is more closely correlated with the crypto market, and assets such as BTC or ETH than with network usage such as number of transactions or ALGO transfers.

• Even in case of Ethereum and Solana, the situation is similar and price is more closely correlated with the crypto market than with the network usage.

• The prices of ALGO, ETH and SOL have moderate positive correlation to resective network activities and as we increase the timeframe, the correlation becomes more and more strong.