• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: FTX Trust Sues Genesis To Recover $1 Billion Allegedly Misappropriated By SBF
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: FTX Trust Sues Genesis To Recover $1 Billion Allegedly Misappropriated By SBF
diversifying asset xrp cryptocurrency

New Binance Report Calls Ripple’s XRP the ‘Best Diversifier’ Digital Asset

Matthew North
by Matthew North
6 years ago
·
Posted in Altcoins, Bitcoin, Bitcoin Investment, Markets and Prices, News, News teaser, Ripple
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

A new Binance Research report highlights the correlation between various cryptocurrency ‘clusters’ – concluding that Ripple’s XRP token offers a ‘diversifying’ position for investors. At the same time, diversifying has not been the most successful strategy when it comes to reducing risk based on historical market performance. 


XRP ‘Best Diversifying’

Binance Research released a report this past week detailing the correlation between types of cryptocurrencies.

It concludes that the largest cryptocurrencies such as Bitcoin and Ethereum exhibited the highest positive correlations or “clusters.” This positive correlation means that the prices of Bitcoin and Ethereum tend to follow the same market trends. As the prices tend to move together, investors are then exposed to similar gains and risks.

Ripple, on the other hand, showed less of a correlation with Bitcoin and Ethereum’s trends and was named “the best diversifier among digital assets with a market cap above $3 billion” in the report.

Previous reports on the risks of diversifying cryptocurrencies, however, suggest that spreading risk across altcoins,  XRP included, might not be the safest strategy given Bitcoin’s typical market behavior.

The Binance study, meanwhile, also noted other findings in the relationship between various cryptocurrencies.

A single cluster was found for the following assets:

  • Bitcoin Gold
  • Bitcoin Cash
  • Ethereum Classic
  • Litecoin

While other coins exhibited price action from being (or not being) listed on specific exchanges: namely the “Binance effect” and the “Coinbase listing effect.”

For example, Tezos and Dogecoin, two assets not listed on Binance, each formed their own individual “child” clusters. While for Coinbase, some assets were listed by the company also formed similar cluster groups (e.g. XLM).

Clusters

The Binance researchers focused on the top 30 cryptocurrencies by market cap and their USD-equivalent prices were also taken from CoinMarketCap. Though ‘real’ cryptocurrency volumes should have also been taken into consideration.

Stablecoins were excluded from the study along with any virtual asset that was backed by other assets “whether they were digital or physical.”

A 30-day rolling average for market caps was used and the 30 “non-backed” largest assets were selected for the research. The date range covered the period between March 31st, 2018 and March 31st, 2019.

The figure below represents the weekly return correlation matrix.

A final set of clusters were also found. The study uncovered that certain “privacy coins” like Dash and Monero formed a single cluster.

However, in an effort to avoid drawing absolute conclusions, the report came with a disclaimer, stating:

On the other hand, performing K-Means clustering on risk-return profiles of each cryptoasset did not return any meaningful results. One potential explanation is that return & volatility profiles are not related to underlying price co-movements over the study period.

The Binance team noted that since its previous report, the overall correlation across the cryptocurrency market has increased,” which may be due to the rise of stablecoin volume, and the corresponding increase in pair offerings, in all crypto asset markets,” the report said.

Earlier this week, Bitcoinist, reported that Bitcoin has pushed the Bitcoin Dominance Index to new highs in 2019 against alts, though ‘real’ indices put this figure over 80 percent.

[Disclaimer: The information contained in this article is intended for educational purposes only and should not be taken as financial advice. Not your keys, not your coins.]


Images via Shutterstock, Binance research

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Matthew North

Matthew North

Follow

Full Profile

Related Posts

Bitcoin

Bitcoin Negative Divergence Hints At Imminent Selling Pressure—Is ‘Uptober’ Under Threat?

10 hours ago
Bitcoin

Fed Chair Choice May Be Bitcoin’s Biggest Bull Trigger, CEO Says

22 hours ago
India

India Cracks Down: Stricter Rules To Combat Rising Digital Payments Fraud

1 day ago
Philippines

Philippines Authorities Move To Put Key Public Records On Blockchain After Mass Protests

2 days ago
FOMO Fuels BNB Surge, But Analyst Warns Of Short-Term Fragility

FOMO Fuels BNB Surge, But Analyst Warns Of Short-Term Fragility

2 days ago
XRP

XRP And DeFi: The Roadmap That Tells It All

3 days ago
Please login to join discussion

Premium Sponsors

Press Releases

  • 上線倒計時:僅剩25天可搶購 Snorter Bot 代幣

    2 days ago
  • 加密錢包掀起發幣熱潮 Best Wallet...

    4 days ago
  • Bitcoin Hyper

    ChatGPT предсказва следващата 1000x...

    5 days ago
  • Snorter надхвърли $4 милиона след...

    6 days ago
  • Experience the Next Chapter of Pickleball with the $PKL Token Presale.

    Experience the Next Chapter of Pickleball with the $PKL...

    1 week ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.