Improving Algorithm Performance using Feature Extraction for Ethereum Forecasting

Abstract

Ethereum is a cryptocurrency that is now the second most popular digital asset after Bitcoin. High trading volume is the trigger for the popularity of this cryptocurrency. In addition, Ethereum is home to various decentralized applications and acts as a link for Decentralized Finance (DeFi) transactions, Non-Fungible Tokens (NFTs) and the use of smart contracts in the crypto space. This study aims to improve the performance of the forecasting algorithm by using feature extraction for Ethereum price forecasting. The algorithms used are neural networks, deep learning, and support vector machines. The research methodology used is Knowledge Discovery in Databases. The data set used comes from the yahoo.finance.com website regarding Ethereum prices. The results show that the neural network Algorithm is the best Algorithm compared to Deep Learning and support vector machine. The root mean square error value for the neural network before feature selection is 93,248 +/- 168,135 (micro average: 186,580 +/- 0,000) Linear Sampling method and 54,451 +/- 26,771 (micro average: 60,318 +/- 0,000) Shuffled Sampling method. Then after feature selection, the root mean square error value improved to 38,102 +/- 31,093 (micro average: 48,600 +/- 0,000) using the Shuffled Sampling method

Keywords

• algorithms
• ethereum
• feature extraction
• forecasting