Further Unravelling Cryptocurrency Behaviour

Abstract

The primary purpose of this study is to compare the levels of effi­ciency between the Islamic cryptocurrency (HelloGold), the ecological cryp­tocurrencies Cardano (ADA) and Stellar (XLM) and the traditional digital currencies Bitcoin (BTC) and Ethereum (ETH) over the period from 24 Feb­ruary 2022 to 28 January 2024. Analysing the DFA exponents reveals differ­ent types of memory in the digital currencies time series. The Islamic digi­tal currency HelloGold (HGT) exhibits short-term memory, suggesting prof­it opportunities based on recent trends. In contrast, the green cryptocur­rency Cardano (ADA) shows long-term memory, indicating the influence of long-term events and trends on prices. The digital currency Stellar (XLM) does not show a clear short-term or long-term memory trend, making it dif­ficult to predict future movements. Meanwhile, Bitcoin (BTC) and Ethereum (ETH) exhibit long-term memory, suggesting that their prices are affected by long-term trends. These results have important implications for investors and traders when adjusting their trading strategies according to the behav­iour observed in cryptocurrency prices.