Comparative Analysis of Cryptocurrencies – Case Study of Bitcoin, Solana and Ethereum

Eldar Salchatov

Bachelor's thesis

Abstract:

The main objective of the author lies in understanding if cryptocurrencies are worth considering as investment options. Consequently, the author comes up with a series of suggestions for potential investors seeking opportunities to increase their capital by investing into specific coins that make up the crypto market. Thus, the author analyzes volatility of those stocks, quantifies contribution of three chosen coins – Solana, Bitcoin and Ethereum to the entire crypto market capitalization and evaluates which coin is the most important driving force of the market capitalization of cryptocurrency. Also, the author characterizes the seasonality of the cryptocurrency market. In order to reach his objectives, the author focuses primarily on quantitative or empirical research. The time period selected for the analysis covers 4 years (from 2019 to 2022) and the analysis is represented by: seasonality analysis, linear regression analysis, trend estimation, correlation analysis and volatility analysis in the form of computation of coefficient of variation for three coins – Solana, Bitcoin and Ethereum. Consequently, the author comes with the following conclusions: volatilities of the three chosen cryptocurrencies are 87% for Solana, 147% for Ethereum and 193% for Bitcoin; the best month to invest in cryptocurrencies is April with 26% more market capitalization in this month; the worst month to invest in cryptocurrencies is July with an almost 22% drop in market capitalization. It is not worth investing in cryptocurrencies if an investor has a strategy oriented on a long-term horizon. Bitcoin is the key driving force behind the market capitalization of cryptocurrency market.

Keywords

Bitcoin, Solana, Ethereum

Jazyk práce: English

Datum vytvoření / odevzdání či podání práce: 14. 3. 2023

Obhajoba závěrečné práce

• Obhajoba proběhla 17. 5. 2023
• Vedúci: Ing. Olga Regnerová, Ph.D.
• Oponent: Tomáš Macák, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Bachelor programme:
Business Administration