MatthewDixon
When trying to build a well diversified Crypto portfolio you MUST consider correlations to negate concentration risk.
#Ethereum Ecosystem Correlations
L2 Tokens #Arbitrum ARB, #Optimism OP, #Starknet STRK often move in step with $Eth since their usage and fees depend on #ETH activity.
DeFi Tokens #UNI, #AAVE, #SUSHI, #COMP, #MKR): run on Ethereum and their revenues/liquidity depend on ETH markets.
Oracle/Infra Tokens #LINK, #BAND LINK is the big one, but BAND and similar also show correlation to ETH because they service the same ecosystem.
Bitcoin-Correlated Tokens
#Litecoin LTC, #Bitcoi
#Ethereum Ecosystem Correlations
L2 Tokens #Arbitrum ARB, #Optimism OP, #Starknet STRK often move in step with $Eth since their usage and fees depend on #ETH activity.
DeFi Tokens #UNI, #AAVE, #SUSHI, #COMP, #MKR): run on Ethereum and their revenues/liquidity depend on ETH markets.
Oracle/Infra Tokens #LINK, #BAND LINK is the big one, but BAND and similar also show correlation to ETH because they service the same ecosystem.
Bitcoin-Correlated Tokens
#Litecoin LTC, #Bitcoi

