The Hong Kong Virtual Asset Consortium (HKVAC) implemented significant changes to its core cryptocurrency index, removing XRP from its Top 5 Large Cryptocurrency Index and replacing it with Solana (SOL). The rebalancing, effective from January 19, 2024, reflects the consortium’s consideration of various factors beyond market capitalization in determining digital asset rankings.
The HKVAC Top 5 index traditionally mirrors the global cryptocurrency ranking by market capitalization. However, the recent rebalancing takes into account additional criteria such as market valuation, investability, and liquidity. Solana, recognized for its robust performance in the crypto market, secured a spot in the Top 5, marking a notable achievement for the digital asset. The move follows Solana’s resurgence after the 2022 collapse of the FTX crypto exchange, during which SOL faced a significant drop of over 95%, bottoming out below $10. The subsequent recovery positioned Solana as a formidable player, surpassing major cryptocurrencies like XRP.
In addition to the XRP and SOL reshuffling, HKVAC’s recent adjustments also impacted other prominent cryptocurrencies. Binance USD (BUSD) and Filecoin (FIL) made way for Near Protocol (NEAR), Internet Computer (ICP), Immutable (IMX), Optimism (OP), and Injective (INJ) to join the pack. Meanwhile, Avalanche (AVAX) replaced Tron (TRX) on the HKVAC Top 10 Global Large Cryptocurrency Index, effective on the same date, a move attributed to AVAX’s recent market surge, elevating it to the 10th-largest cryptocurrency by market cap.
The reshuffling of digital assets within the HKVAC indices underscores the evolving nature of the digital asset space. The intrinsic value of cryptocurrencies is gradually coming to light, as reflected in the consortium’s methodical approach to index adjustments. It is crucial to note that digital asset indexes serve as monitors of growth and value, providing insights into the dynamic crypto landscape. Additionally, the Exchange Rating system, endorsed by SFC license 10 FrancXav Asia Ratings, plays a vital role in evaluating digital asset platforms. HKVAC’s commitment to fair and objective credit ratings contributes to transparency, accountability, and fair competition in the cryptocurrency trading market.
As the cryptocurrency market continues to evolve, HKVAC remains at the forefront, adapting its indices to capture the changing dynamics and emerging leaders in the digital asset space.
Digital Assets Desk