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, #BitcoinCash BCH, #Dogecoin DOGE. All “Bitcoin fork” or meme derivatives tend to follow BTC moves.

Stablecoin Ecosystem Tokens
#Maker MKR, #Frax FXS, #Curve CRV are highly tied to stablecoin demand, which itself expands and contracts with ETH and BTC flows.
Their correlation is more cyclical than directional — they pump in DeFi booms, dump in bear markets.

Other Cross-Correlations include,
#SOL ecosystem #RAY, #ORCA, #JTO

#BNB ecosystem #CAKE, #BURGER, etc.): BNB is the anchor, and many BSC tokens track it.

AI Narratives #FET, #AGIX, #RNDR, #OCEAN move in sympathy when AI hype cycles spike.

Correlation clusters form around base-layer tokens (ETH, SOL, BNB, BTC).
Infra/DeFi tokens tied to those chains usually rise and fall together because their usage depends on the main network’s adoption.