Overall, both diversified and focused approaches have their merits; it ultimately comes down to individual risk tolerance and investment goals. If you’re comfortable with your strategy and believe in the fundamentals of the Ethereum ecosystem, it seems like a sound plan.
Many investors are losing patience with ERC-20 tokens and even ETH due to their weak recovery/growth compared to BTC. However, the Ethereum ecosystem remains highly promising and deserves our attention, monitoring, research, and search for opportunities.
As you mentioned, investors can independently decide on the capital allocation strategy for their portfolios. They can prioritize safety and choose ETH, or they can seek higher returns by investing in other tokens within the Ethereum ecosystem, especially those in hot trends: DeFi, AI, RWA, GameFi, NFT, and more.