Not all Layer-1 volatility is created equal
Different Layer-1 assets can post similar returns while carrying very different paths to get there. Some trend smoothly. Others move through repeated shock-and-rebound cycles.
Where Ethereum sits
Ethereum typically lives in the middle of the Layer-1 volatility spectrum. It is not as defensive as Bitcoin, but it is usually steadier than the more reflexive high-beta Layer-1 names.
Why this matters
Strategy fit changes with volatility character. A trend-following approach usually works better in assets with steadier participation and slower structural deterioration. Mean-reversion systems can look better in assets with sharper overshoots, but they require tighter risk discipline.
Bottom line
Comparing Layer-1 assets by volatility alone misses the point. Shape, persistence, and recovery behavior matter just as much as level.