Crypto Prices, Network Activities Not Necessarily Related: Research

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Blockchains are entirely transparent when it comes to their daily or even hourly activity. One of the theories for the source of a crypto token’s price discovery is the “network value”, or the transactions carried. Busy Networks Don’t Necessarily Command High Crypto Price Recent analysis sees various types of correlations between a token price and the network’s capacity and real-world usage. There is no hard and fast rule to link transaction count directly with the coin or token’s market price. “While unique active users probably wouldn’t be an effective metric to predict prices for day trading, it looks like, over a longer-term, some tokens like LTC really have shown a strong correlative connection between their token price and the number of active users transacting on the network in a given day,” the researchers at LongHash concluded. For the 18 top tokens based on market capitalization, LongHash crunched the data from…

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