We then looked at return correlation among the cryptocurrencies to better understand the interaction within their ecosystem. Despite the fact that the genesis of each coin is independent of each other and the fact that they were created on different platforms using different protocols and at different points in time, our analysis shows (since 2018) moderate-to-high correlation among the cryptocurrencies, excluding stablecoins. The stablecoins exhibit insignificant correlation with the other cryptocurrencies (table 4), which is somewhat expected. Cryptocurrencies / Latest News Bitcoin, ethereum and other top cryptocurrencies have been extremely volatile. But they have also performed very well for investors who have bought and held through the many ups and downs of the crypto market. However, the oldest cryptocurrency, bitcoin, has only been around since 2009. So it’s unclear how well cryptocurrencies will perform as investments over a long time horizon.
One area of innovation that companies should watch for is “second-layer protocols.” Simply put, these are scaling applications that sit on top of blockchain systems. They endeavor to make crypto transactions faster and cheaper. These second-layer protocols are rapidly maturing and likely will soon compete with traditional payment systems. And, possibly, they may become more effective and preferable to the traditional payment systems in use today. Cryptocurrency FAQ Iron Fish is a privacy coin that has gained attention due to its strong backing from top VCs like A16Z and Sequoia Capital. With a market cap of $25 million, this lowcap altcoin offers an opportunity for investors looking for privacy-focused projects.