Portfolio Diversification Summary

WHAT IT DOES

Portfolio Diversification Summary provides AI-powered analysis of a wallet's asset allocation to evaluate diversification and concentration. Analyze token balances and token prices to calculate allocation percentages across all holdings. Identify the number of unique assets held to understand breadth of diversification. Measure portfolio concentration metrics including the largest position size and concentration thresholds. Analyze sector distribution to understand exposure to DeFi, stablecoins, infrastructure, gaming, Layer 1, Layer 2, DEX, Oracle, and other sectors. View correlation indicators to understand asset relationships. The AI translates these technical details into a plain-language diversification summary with a clear verdict (Well-Diversified, Moderately Diversified, Under-Diversified, or Highly Concentrated), number of unique assets, largest position concentration percentage, sector distribution breakdown with percentages, risk observations, and a final assessment with practical notes on diversification. This is an essential tool for investors who want to understand whether their portfolio is properly diversified or overly concentrated in a few assets.

HOW TO USE

1. Connect your Web3 wallet (Ethereum, Polygon, Arbitrum, Optimism, BSC, or any EVM-compatible chain).

2. Select the network that matches your target chain from the dropdown.

3. Enter the wallet address you want to analyze.

4. Choose whether to include NFTs in the diversification analysis.

5. Click "analyze diversification" to read on-chain token balances and generate an AI summary.

6. Review the verdict, number of unique assets, largest position concentration, sector distribution breakdown, risk observations, and final assessment.

7. Use the summary to understand portfolio concentration risks and identify diversification opportunities.

8. Remember: the AI explanation is generated from on-chain data — always review your wallet's signature prompt before signing.

TECHNICAL MECHANISM

Portfolio Diversification Summary reads real on-chain token balances for the specified wallet address using the provider. The tool queries token balances across ERC-20 tokens and native ETH. It fetches current prices for each token using a price oracle or market data provider. It calculates total portfolio value and asset allocation percentages for each holding. It identifies the number of unique assets and measures the largest position size as a percentage of total value. It categorizes each asset into a sector (DeFi, stablecoins, infrastructure, gaming, Layer 1, Layer 2, Oracle, DEX) using a classification system based on token type and protocol. It calculates sector distribution percentages. It identifies concentration risks based on the largest position size and sector concentration. The parsed data is then passed to the AI bridge (BGAI.generate) which produces a structured diversification summary in plain language. The AI explanation is capped at 1,024 tokens and focuses on actionable diversification insights and risk identification.

WHAT IT CANNOT SEE

This tool cannot verify that token balances reflect current holdings across all chains — balances may be inaccurate or spread across multiple networks. It cannot detect off-chain assets or holdings that are not represented as tokens on-chain. It cannot guarantee price data accuracy or timeliness — prices may be delayed or differ across providers. It cannot ensure that asset categorization (sector/type) is accurate for all tokens — some tokens may be misclassified. The AI analysis is based solely on token data and prices — it cannot detect off-chain holdings, pending transactions, or predict future performance. Always verify critical information independently and never rely solely on automated analysis for financial decisions. The AI explanation is generated and does not replace reviewing what you are actually signing in your wallet.

PLEASE NOTE

Portfolio Diversification Summary supports EVM-compatible blockchains only (Ethereum Mainnet, Goerli, Polygon, Arbitrum One, Optimism, BNB Smart Chain, and others via network selection). The tool requires a free API key for the AI bridge and price data provider. The tool never submits transactions or signs messages; it is strictly read-only. The AI explanation is generated after reading token data — always review your wallet's signature prompt before approving any transaction. NFT inclusion may affect the number of unique assets and diversification metrics. Price data is sourced from market providers and may not reflect real-time exchange rates. The tool cannot detect off-chain holdings or predict future performance. Sector classification is based on token type and protocol categorization — some tokens may be misclassified.