Market behaviour & Correlation with Volume
Introduction
This section contains the internal research done by us to estimate the market behaviour when price changes drastically. We have also attempted to simulate the price impact on token prices when large trades happen and devised some models for the same.
Market behavior when volume increases drastically (Used data in OP)
Statistical Summary of the Price, Market-cap and Volume:
|
Price |
Market_cap |
total_volume |
| count |
1001.00 |
1001.00 |
1001.00 |
| mean |
1.83 |
7.392916e+08 |
1.288704e+08 |
| std |
0.83 |
4.205079e+08 |
9.290191e+07 |
| min |
0.45 |
0.000000e+00 |
2.501807e+07 |
| 25% |
1.27 |
2.155656e+08 |
6.835423e+07 |
| 50% |
1.64 |
8.796784e+08 |
1.031476e+08 |
| 75% |
2.28 |
1.088409e+09 |
1.556587e+08 |
| max |
4.69 |
1.628097e+09 |
8.149685e+08 |
Here are the observations for the statistical summary provided in OP:
Price Analysis:
- The average price remains at 1.83 OP, with a standard deviation of 0.83 OP, indicating moderate fluctuations in price.
- The price ranges from 0.45 OP (minimum) to 4.69 OP (maximum), suggesting periods of both extreme lows and highs.
- The median price (1.64 OP) is slightly lower than the mean, indicating a slight right-skew in the price distribution, meaning there are some high-value outliers.
Market Capitalization Analysis:
- The average market capitalization is 739.29 million OP, with a high standard deviation of 420.51 million OP, signifying significant variations in market cap over time.
- The minimum market cap is 0 OP, likely indicating a data anomaly or a situation where the asset was not actively traded on certain days.
- The 75th percentile market cap (1.08 billion OP) is significantly higher than the median (879.68 million OP), reinforcing the presence of higher-end outliers.
Trading Volume Analysis:
- The mean daily trading volume is approximately 128.87 million OP, with a high standard deviation of 92.90 million OP, suggesting notable volatility in liquidity.
- The volume ranges from 25.02 million OP (minimum) to 814.97 million OP (maximum), showing instances of extreme liquidity surges.
- The 75th percentile value (155.66 million OP) is significantly higher than the median (103.15 million OP), indicating that on certain days, trading volumes were considerably higher than usual.
Observations from the Correlation Analysis