You would be surprised at how much speed is correlated with strength. A good strength regimen can DRAMATICALLY improve explosiveness, speed, quickness, jumping, lateral movement, and overall athleticism. Not to mention, being stronger will allow you to absorb contact and stay on your path to the rim, get to your spots, rip through your defender. On defense, it also helps you maintain guarding position. Strength on the perimeter is a huge asset. You are correct that adding TOO much muscle could hinder movement, but adding the right amount of muscle undoubtedly improves athleticism, speed, and quickness. (Getting stronger in the weight room does not equate to body building)
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