- Market prices from verified CoinMarketCap data sources are combined to create the CoinMarketCap 100 Index.
The CoinMarketCap 100 Index (CMC100 Index), which tracks the performance of the top 100 cryptocurrencies by market capitalization, was introduced by CoinMarketCap, a significant supplier of crypto market data.
The press release provided to Cryptonews states that the new index combines market values from verified CoinMarketCap data sources. It is computed in USD and is updated every five minutes.
Notably, currencies are chosen according to their market capitalization ranking, and the index is rebalanced every month.
The index is additionally computed as a market capitalization-weighted index. The top 10 cryptocurrencies account for 90.11% of the market capitalization, which is not surprising.
The team observed that the index offers real-time insight into the major participants in the cryptocurrency market because it is computed every five minutes.
According to them, the CMC100 is the first cryptocurrency index that encompasses such a broad variety of assets, including newer industries like meme coins and gaming.
To maintain the emphasis on erratic, market-driven assets, it does not include stablecoins or asset-backed wrapper tokens. Through an API, the index can be freely included into publications and websites.
However, according to the team, backtested performance data is accessible to offer historical insights and support market analysis, with a base level of 100 set on January 1, 2024.
CoinMarketCap’s Benchmark Oversight Committee oversees the index in the interim to manage methodology modifications, handle conflicts of interest, and guarantee adherence to industry standards.
Access to More Than $3 Trillion in Digital Assets
The CoinMarketCap crew observed that the cryptocurrency market is still changing. As a result, it needs precise and trustworthy benchmarks. They maintained that institutional adoption and market openness have been hampered by the absence of established performance indicators.
Accordingly, the team asserts that the CoinMarketCap 100 Index uses a number of important aspects to meet this demand.
As previously stated, it includes monthly rebalances and real-time updates to guarantee ongoing market representation. It also covers a variety of blockchain initiatives and technologies, as well as around 87% of the entire cryptocurrency market capitalization.
To give a proportionate picture of the market, the index weights assets according to their market value.
The release also stated that monthly methodology evaluations are carried out by the Benchmark Oversight Committee.
The Coinbase 50 Index (COIN50), a benchmark that represents the top 50 digital assets listed on the exchange, was unveiled by Coinbase, a significant cryptocurrency exchange, in November of this year.
It added that in order to guarantee investability, stablecoins and privacy coins are not included. Currently covering over 80% of the whole cryptocurrency market capitalization, the index is rebalanced every three months.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
