Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the recent launch of a 100 Index for Cryptocurrencies by CoinMarketCap.
CoinMarketCap Creates ‘100 Index’ for Crypto
The world's leading provider of cryptocurrency market data, CoinMarketCap, have launched a 100 Index known as CMC100 index to measure the performance of the top 100 cryptocurrencies by market capitalization. This innovative index was designed to aggregate the performance of the top 100 cryptocurrencies according to market prices validated from CoinMarketCap data sources. This will undoubtedly offer unparalleled insight into the dynamic and rapidly evolving digital asset market.
According to the press release the index is refreshed every five minutes and will be calculated in USD. The index is also rebalanced monthly, with the selection of coins based on their market capitalization ranking. The index is also calculated as a market capitalization-weighted index and the CoinMarketCap 100 Index provides an objective, rules-based measure of market performance. The weight of the top 10 coins per market cap is 90.11%.
The CoinMarketCap 100 Index will provide real-time transparency into the cryptocurrency market's most significant coins and tokens while also being the first crypto index to cover such a wide range of assets. It will include emerging sectors like gaming and memes while focusing on projects that represent true market activity and growth potential. This will mean excluding stablecoins and asset-backed wrapper tokens to keep the focus on volatile, market-driven assets.
The index will be freely accessible and it can be embedded into publications and websites through an API. There will be no requirement for licensing agreements and with a base level of 100 set on 1 January 2024, “backtested performance data is available to provide historical insights and aid in market analysis.”
The CEO at CoinMarketCap, Rush, stated:
"At CoinMarketCap, we're committed to delivering tools that empower our community to make informed decisions. The speed at which the digital asset industry changes can be overwhelming for the majority of people. The CoinMarketCap 100 Index sets a new benchmark for market transparency and accuracy, providing essential visibility into over $3 trillion in digital assets to help users better understand and analyze this rapidly evolving market. Over time, we believe the CoinMarketCap 100 Index will make the industry even more accessible to the general public."
The index will be governed by CoinMarketCap’s Benchmark Oversight Committee to ensure compliance with industry standards, manage methodology changes, and address conflicts of interest.
Back in November 2024 the major crypto exchange Coinbase launched its Coinbase 50 Index (COIN50) which was a benchmark representing the top 50 digital assets listed on the exchange. It excludes stablecoins and privacy coins to ensure invest ability and the index is rebalanced quarterly. It currently covers around 80% of the total crypto market cap.
Have a great day.
Peace. CryptoGod-1.
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