Projecting XRP price burst by correlation tensor spectra of transaction networks
arXiv:2211.03002 · doi:10.1038/s41598-023-31881-5
Abstract
Cryptoassets are becoming essential in the digital economy era. XRP is one of the large market cap cryptoassets. Here, we develop a novel method of correlation tensor spectra for the dynamical XRP networks, which can provide an early indication for XRP price. A weighed directed weekly transaction network among XRP wallets is constructed by aggregating all transactions for a week. A vector for each node is then obtained by embedding the weekly network in continuous vector space. From a set of weekly snapshots of node vectors, we construct a correlation tensor. A double singular value decomposition of the correlation tensors gives its singular values. The significance of the singular values is shown by comparing with its randomize counterpart. The evolution of singular values shows a distinctive behavior. The largest singular value shows a significant negative correlation with XRP/USD price. We observe the minimum of the largest singular values at the XRP/USD price peak during the first week of January 2018. The minimum of the largest singular value during January 2018 is explained by decomposing the correlation tensor in the signal and noise components and also by evolution of community structure.
arXiv comment12 pages 8 figures, Supplementary Information: 4 pages, 6 figures
References in corpus (12)
- DeepWalk: Online Learning of Social Representations
- Maps of random walks on complex networks reveal community structure
- Noise Dressing of Financial Correlation Matrices
- Universal and non-universal properties of cross-correlations in financial time series
- A Random Matrix Approach to Cross-Correlations in Financial Data
- Cross-correlations between volume change and price change
- Do the rich get richer? An empirical analysis of the BitCoin transaction network
- On the Ethereum Blockchain Structure: a Complex Networks Theory Perspective
- Evolutionary dynamics of cryptocurrency transaction networks: An empirical study
- Inferring the interplay of network structure and market effects in Bitcoin
- Uncovering the hierarchical structure of the international FOREX market by using similarity metric between the fluctuation distributions of currencies
- Singular values of large non-central random matrices