Analysis

Diversification or glorified gambling? An analysis of the top 50 crypto assets

Quick Take

  • Bitcoin and Ethereum combined have more than double the exchange volume of the following 48 crypto assets combined
  • The largest asset’s volume is 34 times as large as the tenth-largest
  • Blockchain Transparency Institute found that 80 percent of CMC’s top 25 BTC trading pairs have fake volume 
  • Dogecoin, the meme inspired cryptocurrency, has more than 11 times more active addresses than XRP this year

Considering the highly precarious state of the crypto asset class, does it make sense to diversify your portfolio? 

In this report, we look at a number of different factors, including the liquidity of assets, how often each are used daily, and how correlated they all are. With this guidance, we may have a better idea whether exposure to smaller caps is preferable for a balanced portfolio, or if it’s little more than glorified gambling.