According to Milk Road, the market for Layer 1 blockchains (L1s) is expected to become increasingly fragmented, akin to social networks, suggesting that investing solely in one L1 is not advisable. This perspective highlights the importance of diversifying investments across different blockchain applications rather than concentrating too heavily on L1s. The report also references discussions with Avichal, emphasizing the strategic allocation between L1s and blockchain applications. These insights are crucial for traders looking to optimize their cryptocurrency portfolios by balancing investments between foundational blockchain infrastructures and emerging applications. Source: Milk Road.

According to ReetikaTrades on Twitter, the query regarding the percentage of portfolios allocated in stablecoins emphasizes the importance of stable assets in volatile markets. Traders often adjust their holdings in stablecoins to hedge against market fluctuations and maintain liquidity, as noted by ReetikaTrades.

According to Justin Sun, the investment allocation has been increased to $200 million due to high demand, as stated in his recent tweet.