Title: Analysis of the cryptocurrencies market evolution using networks
Authors: Pilar Grau - Universidad Rey Juan Carlos (Spain) [presenting]
Luis Miguel Doncel - Universidad Rey Juan Carlos (Spain)
Abstract: Cryptocurrencies have begun to transform the global financial system. Both their number and trading volume have increased in the recent years. The purpose of this research is to analyze the structure of the cryptocurrency market through the correlations of 119 of its constituent in five different years using methods of random matrix theory and minimum spanning trees. We use network analysis to represent the correlations of the cryptocurrency market and detecting distinct community structures in its minimum spanning tree. Using centrality analysis with betweenness, closeness, degree, eigenvector centrality, and PageRank we demonstrate the importance of cryptocurrencies and their evolution over time. The results can be useful when constructing cryptocurrency investment portfolios.