Clustering Cryptocurrencies with Affinity Propagation

To better understand coin correlations we deployed an Affinity Propagation algorithm and found three distinct clusters of crypto assets, at the top end of the market capitalization table, that move in tandem.

Introduction

A few months ago Radicle’s research team began working on a blockchain composite, not as an investment vehicle, but rather for the purpose of having a clear and unbiased benchmark while evaluating new decentralized projects in the crypto economy. This paper discusses some preliminary…