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

. @BinanceResearch – 2019 Q2 Crypto-Correlations Review

It was a positive outcome for the first six months of the year.

What're your predictions for Q3? https://t.co/kCtAAAtfjX

– Binance (@binance) July 5, 2019

In the second quarter, the price of bitcoin rose by 300%, and the dominance index for the first time in a long time overcame the milestone of 60%. This was the best quarterly market dynamics since the rally in 2017.

Changes in the capitalization of the cryptocurrency market by quarters, data from Binance Research

Low correlation with the rest of the market was also demonstrated by such assets as Binance Coin and Bitcoin SV. Their cost was strongly influenced by the so-called idiosyncratic factors (news background, events). At the same time, the existence of the “Binance effect” was again confirmed – the coins in the listing correlate with the market much more strongly than assets that are not traded on this exchange.

Binance Research data

It is noteworthy that cryptocurrencies based on the Proof-Of-Work consensus algorithm demonstrated a significant drop in the correlation coefficient with respect to each other, and coins oriented to increased privacy are the opposite. The same trend was observed in assets that perform the same or similar functions – for example, the correlation of tokens XRP and XLM exceeded the average for the market.

Separately, Binance Research reviewed projects that launched IEO on the Launchpad platform. Their quotes were largely determined by idiosyncratic factors and depended on the overall market situation less than other assets.

Recall that last month, Binance analysts found that on Asian trading floors the price of bitcoin exceeds the indicators on exchanges in other regions. Increased activity of users of these platforms could in some way contribute to the rapid growth of the first cryptocurrency.

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