Introduction

This dashboard looks into the Algorand price relationship with other items like BTC or ETH price. in this dashboard we going to analyze the following parameters:

1. Compare the Algo price with BTC and ETH price.
2. Compare the Algo price with a number of TX and the Volume of ALGO transfers.

Method

To obtain the price of three Algorand, Bitcoin and Ethereum tokens, we have used the following tables and applied the following conditions in our analysis.

1. For Algo price --> algorand.prices_swap
2. For BTC price --> thorchain.prices
3. For ETH price --> ethereum.core.fact_hourly_token_prices
4. we Limited our analysis to the last two months.
5. hour::date >= '2022-05-01'

Compare BTC Vs ALGO price hourly and ETH Vs ALGO

• As we can see from the hourly changes to the three tokens value chart, Algroand's price changes are largely in line with Bitcoin's price changes.

• It should be kept in mind that Bitcoin, as the most well-known cryptocurrency, has a great influence on the value of the crypto market, and in a way, changes in the price of Bitcoin affect the entire market. The rise of Bitcoin's price indicates the growth of the whole market and its fall indicates the bad market conditions, so Bitcoin's price change impact on other coins can not be ignored, but the remarkable thing is the change in this impact in recent months.

• In the past, the amount of more severe bitcoin fluctuations affected Altcoins, so with the decrease in bitcoin value, Altcoins also lose their value, but more severely, if bitcoin is losing two percent of its value Altcoins lose more than two percent of their value.

• But in recent fluctuations, we have seen that coins like Solana and Algorand, although losing value along with the devaluation of the entire crypto market, but this devaluation was less than bitcoin's and somehow the strong impact of bitcoin on these coins has decreased.

• However, it should be kept in mind that Bitcoin is a symbol of cryptocurrency and somehow represents the entire market. But now other coins are trying to gain a foothold in the market.

• for example in a downturn where all the coins were losing value and the market was declining, due to the positive news about Algorand's contract with FIFA, the value of this coin increased. These changes can be seen from the 7th of May onwards. In this period although the price of Bitcoin and Ethereum was decreasing, Algorand's price had an upward trend.

• As we can see, the amount of transactions per hour has nothing to do with the value of Algorand at that hour and there is no correlation between the number of transactions or the number of users who have traded per hour with the value of Algorand.

• According to these data, it can be concluded that Algorand's changes do not affect the number of transactions or the number of users who used the network and made transactions at that hour.

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• It should be kept in mind that even if there is a correlation between two variables, it does not mean that one of these two variables has affected the other so if both variables increase or decrease in the charts of changes of the two variables, it cannot be concluded that one of these variables has affected the other and it is necessary to check what is the reason for these changes and it is not possible to draw such a conclusion based only on the correlation of two charts.

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• For example, when the market is in a slump and the emotional trades that are done out of fear pass, the number of transactions decreases. Does the decrease in the number of transactions indicates a decrease in the price of the desired coin, or does the decrease in the price of the coin decreases the number of transactions?

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• So, the argument that by examining the number of transactions or the number of users, it should be said that the value of a coin is decreasing or increasing, in my opinion, it is not a correct assumption and many simplifications have been made in the conclusion.

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• There are many factors influencing the price changes of a coin, which together give meaning to price fluctuations, and reviewing of one or two variables with price fluctuations is not a valid study.

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  An example of meaningless correlations between two variables can be seen in the coincidence of suicide statistics and the release time of Nicholas Cage's films.check this link

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more example of wrong conclusion base coloration between tow variable

We should be more careful in our arguments based on charts and not conclude that one of the variables has an effect on the other just by observing the concordance of the changes of two variables.

conclusion

Based on what we saw in this dashboard's analysis:

• we can say that there is a correlation between Algorand, Bitcoin, and Ethereum's prices. This correlation is due to the changes in the price market which impacts all the coins and these three tokens also are affected by it.
• In my opinion, it is a wrong assumption to consider the changes in Bitcoin or Ethereum's prices the main reason for the change in Algorand's price. The main reason is that the market experiences a change and all the coins including Algorand, Bitcoin, and Ethereum are impacted by it.
• I guess the reasons we look at the price of Bitcoin and see the correlation between Bitcoin and other coins is because Bitcoin is the most important crypto coin and kind of represents the market. That's why we consider changes in the market affected by Bitcoin price change so far.
• Comparing the changes of Solana and Algorand, I saw that there is no correlation between the number of transactions, the volume of transactions, and the price changes of these two coins.

Compare Algorand with Solana Network

Sol price Vs sol transactions

This chart shows the changes in the number of transactions and the changes in the price of Solana.

Considering the changes in the number of transactions performed and the changes in the price of Solana, it can be said that there is no correlation between this two and there is no special relationship between the changes in the price of Solana and the changes in the number of transactions.

This chart shows the volume of Solana transferred per hour with the price of Solana at that hour. In this chart, there is no sign of the correlation between changes in the price of Solana and the amount of Solana transferred.

In this chart, we examined whether there is a difference between the number of users who have transferred Solana and the price changes of Solana Correction.

According to the results, it can be said that there is no relationship between the number of users and the price of Solana

Looking into Solana Data

To see if the behavior of other networks such as Solana is more similar to Algorand or Ethereum or Bitcoin, we first compare Solana price changes with Bitcoin and Algorand, then compare the number of transactions in the Solana network with Solana price changes to see like Algorand, there is a correlation between price changes and changes in the number of transactions. (There was no correction in Algorand)