Hong Kong consortium drops XRP from top 5 crypto index

Hong Kong Digital Asset Score Company (HKVAC) has officially delisted XRP and removed it from the top 5 cryptocurrency index.

The decision reflects XRP’s decline in performance among cryptocurrencies with the highest global market capitalization. The decision was part of a rebalancing of the indices.

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The HKVAC will be replacing XRP with Solana (SOL), effective January 19, 2024. Despite gaining regulatory clarity in its SEC case, XRP still lags in value. Discontent among investors has led to the proposed solutions, including burning escrow holdings to boost the cryptocurrency’s value.

#XRPCommunity #SECGov v. #Ripple #XRP The @SECGov has filed a Motion to Compel @Ripple to produce (a) its financial statements for the years 2022-2023; and (b) its post-Complaint contracts governing “Institutional Sales.”https://t.co/Egc4wpf7UY

— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) January 11, 2024

Alongside XRP, HKVAC will delist other cryptocurrencies like Mantle (MNT), Lido DAO (LDO) and Maker (MKR). Quant (QNT) and Arbitrium (ARB) will also be taken off the index.

The agency introduces new entries such as NEAR Protocol (NEAR), Web Computer (ICP), Immutable X (IMX), Optimism (OP) and Injective (IN). Tron (TRX) also replaces Avalanche (AVAX) in the top ten Global Large-Cap Crypto Index.

Solana outperforms, XRP stagnant

Solana, known for its high throughput and low transaction costs, continues to outperform. Surging from $8 to $125 within a year, Solana capitalized on bullish market sentiment, overshadowing XRP’s stagnant performance at $0.5745.

Solana’s architectural design positions it as one of the faster blockchain networks. It is known for being able to handle up to 65,000 transactions per second.

Notably competitive with blockchains like Ronin and Flow, Solana has become a significant player in the NFT market. Despite trailing behind Ethereum, its performance remains relied upon by many.

Solana’s appeal extends to its fee model, making it attractive for both businesses and individual users. Despite a dip to $23.49 in July 2021, SOL rebounded, reaching an all-time high of $258.93 in November. As of January 2024, Solana’s price stands at $99.12, reflecting a 5.03 percent increase in the last 24 hours, with a live market cap of approximately $42 billion.

Despite investor anticipation for potential catalysts like a Ripple IPO or XRP ETF, the altcoin has struggled to reach the $1 mark since 2023. XRP is currently trading at a stagnant $0.5745.

HKVAC’s periodical index updates

Before January 2024, the HKVAC last removed a cryptocurrency from its index in October 2023. In that instance, HKVAC substituted USD Coin (USDC) with XRP in the HKVAC Cryptocurrency Global Large Top5 Index.

Furthermore, HBAR, MKR and QNT joined the significant large market cap cryptocurrency indices, while Cryptonex (CNX), ICP and HEX tokens were removed.

The HKVAC periodically updates its cryptocurrency indices to reflect market dynamics and the performance of various cryptocurrencies. The agency employs a comprehensive process to determine the inclusion or exclusion, with a procedure involving assessing eligible cryptocurrencies within the HKVAC Cryptocurrencies Large Market Cap Index.

Cryptocurrencies go through several stages in the selection process. Firstly, all eligible cryptocurrencies within the specified universe are considered. Then, they are ranked based on their median market capitalization over seven days. The top 30 cryptocurrencies are selected for inclusion in the index.

Additions and removals of constituents may occur due to factors like hard forks, soft forks, staking rewards, new listings and other market dynamics. The HKVAC Index Committee reviews the methodology and procedures at least once within a 12-month period to ensure relevance and accuracy.

Rebalancing takes place as needed, adjusting the number of constituents in response to changes in the eligible universe. These systematic steps ensure the HKVAC cryptocurrency indices are periodically updated, providing an accurate representation of the evolving state of the global cryptocurrency market.

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