Opinion: Ethereum leaves altcoins

Ethereum, the second most capitalized cryptocurrency after Bitcoin, probably no longer deserves classification as altcoin. This opinion was expressed by analysts of the institutional cryptocurrency exchange San Francisco Open Exchange (SFOX).

In its latest report on cryptocurrency volatility, SFOX notes that the current Bitcoin correlation against Ethereum is significantly higher than similar BTC against other altcoins.

“This can speak in favor of the fact that Ethereum, in the same way as Bitcoin, becomes a blockchain, a publicly recognized individual asset with its own characteristics. If this trend continues, it may be incorrect to classify Ethereum as altcoin along with other cryptoactive assets, ” – write to analysts of the exchange.

They accompany their conclusion with graphs showing the correlation between different cryptocurrencies.

Thus, it is noted that for the 30-day period until July 22, the correlation index between ETH and BTC was 0.788. At the same time, the correlation between BTC and Bitcoin Cash (BCH) was 0.638, Litecoin (LTC) – 0.577, Bitcoin Satoshi Vision (BSV) – 0.619, Ethereum Classic (ETC) – 0.602.

SFOX researchers suggest that this data also supports the idea that investors and traders prefer bitcoin over altcoins, especially in light of the increasing attention paid to industry regulation. The idea is that their expectations are related to the fact that regulators will first of all solve issues related to the first cryptocurrency.

Additionally, analysts note that recent developments around Facebook’s project to launch Libra’s own digital currency have led to an increase in Bitcoin’s volatility and dominance, although its price has declined. So, if back in March, the bitcoin dominance index was around 50%, then in July, depending on data sources, this figure was between 65% and 75%.

Recall earlier in July, the research division of the Binance exchange published a quarterly report, in which it estimated the correlation of digital assets among themselves. According to the report, the correlation between Bitcoin and the rest of the market has decreased significantly compared with the figures for the first quarter of this year.

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