A coin pair tree (often visualized as a minimum spanning tree) illustrates how cryptocurrencies relate based on price correlations. Each node represents a crypto asset, and connections show strong statistical relationships—thicker or shorter links typically signal higher similarity. This clustering reveals natural groupings or “communities” (like major coins, stablecoins, or specific sectors), aiding in understanding market behavior, diversification, and systemic risk. The tree helps traders and analysts identify which coins move together and which act independently. It’s a powerful tool for mapping the market’s structural interrelationships.
