10 Cryptocurrencies With the Lowest Historical Correlation to Bitcoin на сайте Nedvio

As the first and most prominent cryptocurrency, Bitcoin exerts a gravitational pull on the overall crypto market. However, some digital assets have proven far less correlated historically, offering diversification benefits in terms of reduced portfolio volatility. Here are 10 cryptocurrencies with the lowest correlation to Bitcoin based on historical price data.

Chainlink (LINK)

Chainlink is a decentralized oracle network that provides external data to blockchain apps. LINK, its native token, has a 0.29 correlation coefficient relative to Bitcoin over the past 3 years. Chainlink more closely tracks DeFi and NFT trends rather than Bitcoin price swings.

USD Coin (USDC)

USD Coin is a stablecoin pegged 1:1 to the U.S. dollar, with its supply adjusted algorithmically to maintain the peg. With minimal volatility, USDC shows essentially no correlation to Bitcoin prices over time, making it a safer hedge.

UNUS SED LEO (LEO)

UNUS SED LEO is the utility token for the iFinex exchange ecosystem. As one of the earliest exchange tokens, LEO trends more on platform transaction volumes than the crypto market at large. Its non-correlation with Bitcoin sits at 0.39 over 3 years.

Theta Fuel (TFUEL)

Theta Fuel powers operations on the Theta blockchain for decentralized video streaming. TFUEL has carved out a niche use case in a rising sector, causing it to move more on Theta adoption metrics than Bitcoin manias and panics.

NEM (XEM)

NEM is a smart contract platform built with customizable business features. Its XEM token serves governance functions rather than monetary ones. XEM has had a 0.41 historical correlation to Bitcoin, driven more by platform upgrades and commercial integration.

Synthetix (SNX)

Synthetix is a DeFi protocol enabling trustless synthetic assets and derivatives trading. Its SNX token has fluctuated based on interest in DeFi trading rather than Bitcoin prices, with a 3-year correlation of 0.47.

Maker (MKR)

MKR is the governance token of the MakerDAO and DAI ecosystem. Its role in decentralized finance has given it price independence from Bitcoin, with a 0.48 correlation over 3 years.

Dogecoin (DOGE)

Dogecoin is a meme coin lacking technical sophistication but with a dedicated fan base. Its price has largely trended on virality in social media and endorsements rather than any Bitcoin utility, reflected in its 0.50 non-correlation.

Ethereum Classic (ETC)

Ethereum Classic split off from Ethereum after disagreements following a 2016 hack. With a distinct community and protocol, ETC has moved to its own beat for the most part, with a 0.54 correlation to Bitcoin.

Basic Attention Token (BAT)

The BAT token supports the open-source Brave browser and its blockchain-based digital advertising model. BAT’s niche use case in a growing web sector has made its price path more independent from Bitcoin and the overall market.

Conclusion

While almost all cryptocurrencies exhibit some correlation to Bitcoin as the crypto market leader, coins with distinct use cases, communities, and narratives have shown much greater divergence. For investors seeking to diversify risk, focusing on historically low-correlated assets makes sense. However, correlations can change over time, underscoring the need for continuous rebalancing.