- Solana (SOL) has replaced XRP in the HKVAC Top 5 Global Large Cryptocurrency Index.
- The change is based on market capitalization, liquidity, and other factors.
- Solana has also been added to the HKVAC Equal-weighted Index.
- Other changes to the HKVAC cryptocurrency indices include the addition of Internet Computer (ICP), NEAR Protocol (NEAR), Optimism (OP), Injective (INJ), and Immutable (IMX), and the removal of TrueUSD (TUSD), Binance USD (BUSD), Ivy (IVY), Filecoin (FIL), and Maker (MKR).
Story
In December 2023, Solana (SOL) surpassed Ripple’s (XRP) to become the fourth-largest cryptocurrency by market capitalization. Following this, HKVAC, a Hong Kong-based digital asset bureau, underwent index rebalancing. The bureau recently announced that the HKVAC Top 5 Global Large Cryptocurrency Index will add SOL and remove XRP, effective Friday, January 19, 2024.
While the addition of Solana to the HKVAC Top 5 index aligns with the global crypto rankings based on market capitalization, several other factors are considered for inclusion. In addition to market capitalization, the bureau also considers the liquidity and investability of a virtual asset, among other critical factors that investors find important. Additionally, Solana will be included in the HKVAC Equal-weighted Index of the Top 5 Global Large Cryptocurrencies, replacing XRP.
Furthermore, the announcement also states that the HKVAC Global Large Cryptocurrency Index will introduce Internet Computer (ICP), NEAR Protocol (NEAR), Optimism (OP), Injective (INJ), and Immutable (IMX). At the same time, TrueUSD (TUSD), Binance USD (BUSD), Ivy (IVY), Filecoin (FIL), and Maker (MKR) will be removed from the index.
The new entrants to the Global Large Crypto Index will also be added to the HKVAC Large Cryptocurrency Index (excluding Bitcoin, Ethereum, and Stablecoins). At the same time, Maker (MKR), LidoDAO (LDO), Mantle (MNT), Quant (QNT), and Arbitrum (ARB) have left the index.
Additionally, Avalanche (AVAX) is slated to replace Tron (TRX) in the company’s Top 10 Global Large Cryptocurrency Index. The same adjustment has also been made to the Equal-weighted Index of the Top 10 Global Cryptocurrencies.
After its recent surge, Solana has experienced a significant pullback. The Solana price has fallen below $100, after peaking at more than $120 in December 2023. As of writing, the SOL price is at $98.21, down 2.44% on Friday, January 12.
The decline is marked by a bearish trend in the crypto market. Additionally, SOL’s trading volume in 24 hours has fallen by 20.36% to $3.69 billion. It currently has a market capitalization of $46 billion.
XRP has also succumbed to the market downturn after an initial rally today. As of writing, the XRP price has fallen by 1.45% to $0.5929 on Friday. Additionally, trading volume in the past 24 hours has fallen by 25.24% to $1.88 billion. The crypto’s market capitalization was set at $32 billion.
Conclusion
The changes to the HKVAC cryptocurrency indices reflect the ongoing evolution of the crypto market. Solana’s inclusion in the Top 5 index is a testament to its growing popularity and potential. However, the recent pullback in the SOL price suggests that the market remains volatile.
Julia