Correlation Analysis of Ethereum and ERC20 Market Value
Editor's Note: This article is from:TokenGazer（ID：TokenGazerOfficial）, Author: HD, reproduced by Odaily with authorization.
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Ethereum and ERC20
The tokens issued by the Ethereum ERC0 standard and the market value of Ethereum itself have maintained a relatively balanced relationship. Historical data from April 2018 to the present shows that the market value of ERC20, which excludes stablecoins, has always been 30% of the total market value of Ethereum. to run in the 80% range.
Since the end of 2019, both ETH and mainstream ERC20 have had outstanding market performance, many ERC20 have 2-3 times the market performance, and Ethereum itself has also recorded almost 100 since January 2020 after its recent strong rise. % of revenue. After the strong performance of the market, we can't help but ask:
What kind of reference can historical data provide for the future trend of ETH and ERC20?
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Featured ERC20
We know that among the many ERC20 tokens, there are many tokens with more subdivided asset characteristics, which show a low correlation with Ethereum itself. For example, HT issued by Huobi, BNB before the BNB mainnet launch, etc., are all subdivided types of platform tokens, and their market performance is more affected by corresponding trends. Other tokens are IOUs launched on the mainnet of many projects, and they themselves are more affected by the progress of the project itself. Therefore, a certain selection of ERC20 may be able to select a combination that is more relevant to ETH itself. At the same time, because DeFi projects have received widespread attention in 2019 and are recognized by the community as the current landmark construction of Ethereum, we try to select projects supported by the Ethereum Foundation, leading DeFi projects, etc., to build a selected ERC20 portfolio , including: LINK, MKR, BAT, 0x, OMG, REP, ENJ, KNC, SNT, GBT, MANA, LOOM, ANT, BNT, CIVIC.
We selected historical data from January 2018 to February 13, 2020, and the correlation analysis is as follows:
From the correlation analysis, it can be seen that although the correlation between a single ERC20 and Ethereum varies, the correlation between the overall market value of this selected ERC20 and the market value of Ethereum is as high as 0.96.
Although the selected ERC20 has a high correlation with the market value of Ethereum as a whole, its intraday volatility and the proportion of Ethereum still have a relatively large volatility, and the daily standard deviation of the ratio is more than two percentage points.
