Binance Research, the market intelligence arm of the crypto exchange Binance, has released a report on the correlation between cryptocurrencies, the dominance of Bitcoin and the performance of Binance Coin.
When it comes to the correlation between digital assets, Ethereum is second to none with an average coefficient of 0.69. A coefficient of 0.5 and above shows a strong positive correlation, and the results indicate that Ethereum tends to closely follow Bitcoin and the broader crypto market at large.
Binance Research also notes that Bitcoin flexed its muscles in terms of market dominance last year. The king of crypto grew its market share from 52% in January 2019 to as high as 69% in September. Bitcoin’s market share then tapered off to 68% by the end of the year.
Bitcoin dominance is a measure of Bitcoin’s value relative to that of the entire cryptocurrency market. Bitcoin’s 68% market representation means that all other cryptocurrencies have a combined market share of 32%.
The crypto study also touts Binance Coin as the best performing crypto-asset of 2019, in terms of mid and large-cap coins.
“BNB was the best-performing asset (+128%) of the – on median – largest ten cryptoassets by market capitalisation over 2019. Bitcoin was the second best-performing asset (+87%) in this group.”
You can check out the full report here.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Peshkova