A new report preprint shows a correlation between crypto asset prices and their code developers.

"We reveal that the first coding event linking two cryptocurrencies through a common developer leads to the synchronization of their returns in the following months," said a preprint research report titled, From code to market: Network of developers and correlated returns of cryptocurrencies.

It's all in the code

Destined by their code underpinnings, cryptocurrencies hold internal laws and guidelines concerning a number of aspects, such as security and availability, the beginning of the 37-page report explained.

Many of these assets also host open-source code, warding off manipulation. "GitHub alone currently stores the code of more than 1,600 cryptocurrencies," the report detailed.

Instead of taking a siloed view, the write-up mentions a look at the bonds seen across these assets. "Here, we show that 4% of developers contribute to the code of more than one cryptocurrency and that the market reflects these cross-asset dependencies," the report said.

Crypto assets host more correlations than meet the eye

Essentially, if developers work on multiple assets, those assets will share similarities in market action. "Our results identify a clear link between the collaborative development of cryptocurrencies and their market behavior," the preprint said, adding:

"More broadly, our work reveals a so-far overlooked systemic dimension for the transparency of code-based ecosystems and we anticipate it will be of interest to researchers, investors and regulators."

Mainstream markets host a large number of fundamental drives, which traders often use in determining price valuation. The report's findings, however, could usher in new standards for crypto asset fundamental analysis.

Cointelegraph reached out to Andrea Baronchelli, one of the report's collaborators, for additional details, but received no response as of press time. This article will be updated accordingly should a response come in.