A simplified example of how I look at the Crypto space; I want you to look at cryptocurrency coins as planets. Some have large masses which gives them large gravitational pull. In this analogy we will look at this pull as correlation between coins. When I checked recently BTC dominated this category with ~650 billion In total coin market cap= circulating coins×current market value. ETH with ~162 billion In coin market cap. But they serve two completely different purposes. Just as planets resource content varies substantially, ETH is highly more valuable In these terms. Think of BTC as an experiment on monetary theory, while ETH operates as a platform for DAPPS, "Decentralized Apps". What I'm saying Is BTC was build to be slow, and with potential to grow into a behemoth At ~.25 market cap of BTC, ETH Is currently processing 12 billion transactions daily on average, versus Bitcoin's 9 billion. Now we'll Ethereum wasn't built to grow bigger than BTC in the long-term term, It Is very likely to surpass BTC In the short-term. This theory Is dependent on Ethereum not getting shot down due to the so-called Ethereum killers being developed. Most notably Immutable, and more recently Polkadot show potential. Primarily Immutable which came up on the ETH Blockchain. Due to be released this year late Q1. Immutable Is being built up by God's Unchained CEO James Ferguson. It's purpose Is very similar to ETH. But with 0 transaction costs such as Ethereum's gas costs that have grown extremely high. I'd pay close attention to Immutable In the coming months. Polkadot as well. Which has a completely different purpose from both. It uses what's known as sharding to allow any blockchain to communicate efficiently across chains.
My point Is right now ETH Is losing Its affinity to BTC at an increasing level. Polkadot Is a new player on the scene of top 3 non peg highest market cap coins moving with extreme velocity. It shows more correlation to ETH than to BTC at points. Now I have to watch these coins because of my long potentially huge profit breakouts of altcoins during recorrection's of this triangle 🔺️ alone. This Is due to such high correlation to trends In the majority of the market cap for Crypto coins.
This Is an extremely simplified analogy meant for people with little understanding of the revolution we are experiencing. Things are a lot more complicated. But In economics we often make certain assumptions to understand a more simple picture of things.