Intro

How does $UNI, the Uniswap token, behaves when compared to $ETH, one of the main cryptocurrencies? And how about $UNI vs other Decentralized Exchanges (DEX) tokens? Does this behavior changes over time? We will investigate all of that in this article

Methodology

First, we need to choose which tokens to include in our analysis. $UNI absolutely needs to be included, but other than that it makes sense to include other uniswap-style DEX coins such as $SUSHI and $CAKE. It is also interesting to compare $UNI with $AAVE, $CRV, given that they were all created in Ethereum and are some of the biggest DEXes according to defillama.

Now, we need to fetch price data for all of these coins. We will use Binance instead of Flipside or Dune because they have more granular data (Open, High, Low and Close for each minute) and information about the volume as well. One problem with this approach is that we won’t be able to track activity from other exchanges, specially DEXes (which tend to have very distinct behaviors from time to time when compared to Binance). We will use the Open price as the default price.

After that, we will analyze the correlation in different periods (we will elaborate on these choices along this article):

We will also aggregate the data by two different timeframes: 1 minute and 1 day, depending on the processing required for each individual analysis

Lastly, a cointegration test will be used to determine if the price of the tokens have a long-term relation

All of this analysis will be conducted using Python, you can find the source code here, along with the data extracted from Binance

Analysis

You can click on the HTML file on top of each plot to download the interactive version of the corresponding plot

Initial Dataviz