Cryptocurrency users and speculators are often a bunch of people with intriguing portfolios. It appears there is a strong correlation between the tokens people hold in their portfolios. A recent analysis by CryptoRank of 1INCH token hodlers shows which other crypto assets they prefer having in their portfolio.
What Else Do 1INCH Token Holders Own?
Not everyone sees merit in the same crypto assets, which is a healthy sign. There are many different cryptocurrencies to choose from, each of which will perform differently over time. Building a versatile portfolio requires users to diversify their assets to the best of their abilities. It is a daunting task, given the vast number of markets to explore today. However, one cannot deny there is a certain correlation in specific segments.
Data by CryptoRank paints an exciting picture in this regard. The team analyzes how 1INCh token holders diversify their portfolios these days. As 1Inch is one of the many decentralized exchange-oriented assets, it benefits from ample market attention due to the potential of DEXes. However, 1Inch competes against other giants for market share.
It turns out the majority of 1INCH token holders also have SUSHI, CRV, and UNI in their portfolios. A surprising choice is that SushiSwap and Uniswap are “competitors” to 1inch in this market segment. Even so, it is never a bad idea to bet on multiple horses in the same industry. Every DEX is an infrastructure provider, and those projects will always be relevant for years to come.
Further down the rankings, it becomes apparent most 1INCH holders favor DeFi tokens. Names such as Balancer, Polkastarter, Yearn Finance, Synthetix, and Ampleforth all come up. The overlap with 1Inch’s token holders differs for every DeFi token, yet there is still a strong correlation at this time. Other tokens to note include Badger DAO and TrustSwap, both of which are major DeFi assets.
A Similar Overlap For UNI Holders
Comparing these statistics to the UNI holders list, there is a strong overlap in certain regards. UNI owners mainly hold 1INCH in their portfolio, as well as WETH and SUSHI. Synthetix and yearn Finance make an appearance in this top as well, which is rather interesting. Competition is less of an issue among these token holders, as they all want exposure to markets with tremendous long-term potential.
However, some different tokens make a sudden appearance. DAI, Chainlink, Aave, Polygon, and Wrapped Bitcoin are very popular among UNI token owners. An intriguing development that shows no two groups of users are the same in this nascent industry. Moreover, it is crucial to note these “overlaps” will always be subject to change.
All in all, it is good to see cryptocurrency enthusiasts diversify their portfolios in a meaningful way. There are many prominent tokens and assets to explore. However, putting all of one’s eggs in the same basket is not a favorable decision by any means. DeFi tokens are as viable as other crypto assets for diversification purposes, even if their performance can be very different.