Linkages Among Cryptocurrencies

Abstract

This chapter investigates the linkages and connections between different cryptocurrencies. Johansen cointegration and network analysis is employed to examine top eight cryptocurrenices (i.e., Bitcoin, Dogecoin, Stellar, Cardano, Tether, XRP, Ethereum Classic, and Chainlink). The study documents evidence to support cointegration among different cryptocurrencies. The study finds that cryptocurrencies Ethereum Classic, Chainlink, Dogecoin, and Bitcoin are connected as one group, and XRP, Stellar, and Cardano are connected as another group whereas Tether does not fall under any group and indicates no connection with other cryptocurrencies considered.