Is the price of Algorand more closely correlated with the crypto market, and assets such as BTC or ETH, or is it more correlated with network usage such as number of transactions or ALGO transfers?

in this dashboard we find the answer to the questions above. because of the large amount of data needed to be processed, we limit our research to data of the year 2022 and ignore every thinng before.

we start with comparing algo price with attributes of the algorand blockchain such as number of transactions, number and amount of algo payments and number and amount of algo transfers.

in the chart above the number of transactions on a daily basis along side the average price of Algo has been shown. even the data is limited to 2022, the X-Axis does not represent the date. in order to show the correlation of algo price and number of transactions, the number of transactions has been shown in the order of their value. so if the price of algo was related to number of transactions, we would have seen a steady rise or drop but that's not the case so we can not conclude that these two attributes are related.

next we look at the number and amount of Algo transfers.

in the charts above, the X-Axis is NOT the date. same as the first chart we see the number and amount in order but no noticeable pattern in the price of Algo. this tells us that the price of algo is not related to number or amount of Algo being transferred.

next we look at the number and amount of Algo payment transactions.

in the charts above we can see that there is no correlation between the number and amount of Algo payment transactions and Algo price.

now we move on to outside of Algorand and check ETH and BTC prices to see if they impact Algo price.

the chart above shows the price of ETH in different days in an order based on the ETH price. take a look at the fifth and sixth column from left. then look at 129th and 130th and 131st. lastly look at the 160th to 164th columns from left. these are points where there is a drastic drop in price of ETH. you can see clearly that the price of Algo drops immediately. however, if you look at the columns 35 to 40, we see that the price of ETH is decreasing but at a steady rate so the drastic drops and rises in Algo is price is not caused here and by ETH price. this tells us there are other factors.

so let's look at the price of BTC.

at first glance it seems there isn't any correlation between the price of BTC and Algo but if we look carefully, we see that as long as the drop of Algo is steady and at a fixed rate, the price Algo is not much effected negatively and even in some cases Algo goes up such as column 3rd and 4th. but when there is a sudden drop in BTC price, the more often than not the price of Algo is much effected like columns 126th to 13oth.

for a different perspective, please look at the chart below.

in the chart above we can see the changes in BTC, ETH and Algo's average price on a daily basis. while there clear signs that ETH and BTC's price has an impact on Algo's price there are some sections in the chart above where the price of Algo does not change the way it is expected and stays the same or differs in a different way like may 1st. this tells us that while the price of ETH and BTC are correlated to the price of Algo, there must be other factors at work to count for every change in the price of Algo.