Bitcoin has been a good choice for investors over the years, even though its growth may have currently been restricted because of a consolidating market. Despite the stagnated growth period, it has been returning 49% in YTD. As there is a strong correlation between Bitcoin and most major altcoins along with other cryptocurrencies, the overall trend has remained the same in the market. However, those that have decoupled from Bitcoin have been witnessing more growth, such as Chainlink [LINK].
CoinMetrics’ correlation chart showed that the peak in the correlation between BTC-LINK spiked after the Black Thursday event in March and was followed by a peak in April at 0.80714. After which the correlation has been gradually declining until the sudden dip in September. The correlation has resumed its usual low faced during the beginning of the year and was t 0.4486, at press time.
This low correlation has led to LINK outperforming BTC as it reported a YTD return of 463%. As LINK trades at $16.47, at the time of writing, its top 10 non-exchange address whales have managed to add 12.85 million more tokens in the past six weeks, as per data provider Santiment.
Apart from LINK, other Ethereum-based projects such as Ren and Band protocol [BAND] were also decoupled from Bitcoin. As per Santiment, the decoupling happened on 25 September.
The transaction volumes of REN have been spiking along with LINK, showing the interest they have driven in the market over the past few days. It was a short-term trend and is subject to market risks, but the decoupling could drive the price of the assets higher, as we saw in LINK. With traders transacting more in REN it might be the next coin to gain with hype.
Whereas Bitcoin’s strong correlation with the stock market has been fearful especially during the time of the market dump. Now, when Dow futures expired, Bitcoin price has been struggling to recover.