Tracy
@tracys
DeFi tokens’ correlation with BTC is moderately positive (0.6-0.7) in a market. As BTC rises, DeFi tokens often follow, with some outperforming due to ecosystem-specific growth. Opportunities lie in projects with rising TVL and user adoption, like Uniswap or Aave. Risks include smart contract vulnerabilities and regulatory cracks downs, which can decouple DeFi from BTC’s upward moves, leading to steeper declines. Diversification across top DeFi tokens mitigates risks.
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