HKVAC Index Adjustments
Solana (SOL) has replaced Ripple’s XRP as the 5th largest cryptocurrency, leading to index rebalancing by HKVAC. The agency announced that the HKVAC Top 5 Global Large Cryptocurrency Index would add SOL and remove XRP starting from January 19, 2024.
Factors Considered for Listing
The addition of Solana to the HKVAC Top 5 Index is based on factors beyond market cap. The agency evaluates liquidity, investability, and other critical factors that investors consider when listing virtual assets. Additionally, Solana will be included in the HKVAC Equal-weighted Index, replacing XRP.
Changes in the HKVAC Global Large Cryptocurrency Index
The HKVAC Global Large Cryptocurrency Index will introduce Internet Computer (ICP), NEAR Protocol (NEAR), Optimism (OP), Injective (INJ), and Immutable (IMX). On the other hand, TrueUSD (TUSD), Binance USD (BUSD), Ivy (IVY), Filecoin (FIL), and Maker (MKR) will be removed from the index.
The new entrants will also be added to the HKVAC Large Cryptocurrency Index, except for Bitcoin, Ethereum, and Stablecoins. Maker (MKR), LidoDAO (LDO), Mantle (MNT), Quant (QNT), and Arbitrum (ARB) will exit this index.
Replacement in Top 10 Global Large Cryptocurrency Index
Avalanche (AVAX) will replace Tron (TRX) in both the firm’s Top 10 Global Large Cryptocurrency Index and its Equal-weighted Index of the Top 10 Global Large Cryptocurrencies.
Solana and XRP Price Movement
Following a recent rally, Solana has experienced a significant pullback. The SOL price dropped below $100 after reaching over $120 in December 2023. Currently, SOL is priced at $98.21, down by 2.44% on January 12.
In line with the overall bearish trend in the crypto market, SOL’s 24-hour trade volume decreased by 20.36% to $3.69 billion, while its market capitalization stands at $46 billion.
XRP also faced a downturn in the market after an initial surge. As of now, XRP is down by 1.45% at $0.5929 on January 12, with a trade volume decline of 25.24% to $1.88 billion in the last 24 hours. The crypto’s market cap is recorded at $32 billion.
Hot Take: Solana Ousts XRP from Hong Kong’s HKVAC Top 5 Crypto Index
Solana’s rise to become the fifth largest cryptocurrency has led to its inclusion in the HKVAC Top 5 Global Large Cryptocurrency Index, replacing XRP. This adjustment reflects not only market cap but also factors like liquidity and investability that are important to investors. While Solana’s price has experienced a pullback, it remains an influential player in the crypto market. As cryptocurrencies continue to evolve and rankings change, it will be interesting to see how these adjustments impact the industry as a whole.
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