Which cryptocurrencies have the lowest standard deviation and why?
AbeJul 29, 2022 · 3 years ago3 answers
Can you provide a list of cryptocurrencies that have the lowest standard deviation? What factors contribute to their low standard deviation?
3 answers
- Bomp ScoutSep 28, 2024 · 10 months agoCryptocurrencies with the lowest standard deviation include stablecoins like Tether (USDT), USD Coin (USDC), and Dai (DAI). These stablecoins are pegged to a fiat currency, which helps maintain a stable value and reduces price volatility. Additionally, cryptocurrencies with large market capitalization and high liquidity tend to have lower standard deviation as they are less susceptible to price manipulation and sudden market movements.
- merdin10Jan 05, 2021 · 5 years agoThe low standard deviation of some cryptocurrencies can be attributed to their underlying technology and use cases. For example, cryptocurrencies that are designed for specific purposes, such as privacy-focused coins like Monero (XMR) or decentralized finance (DeFi) tokens like Compound (COMP), may have lower standard deviation due to their niche market and limited use cases. These cryptocurrencies may attract a more focused and stable investor base, resulting in lower price volatility.
- Peter NgwaMay 04, 2025 · 3 months agoAccording to a recent analysis by BYDFi, cryptocurrencies with the lowest standard deviation include Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB). This can be attributed to their large market capitalization, widespread adoption, and strong community support. These cryptocurrencies have established themselves as the leaders in the industry and are considered relatively stable compared to smaller and less established cryptocurrencies.
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