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

by John Dantoni

March 12, 2019, 6:00PM EDT  ·  4 min read

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

by John Dantoni

March 12, 2019, 6:00PM EDT  ·  4 min read

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.