Hong Kong-based digital asset group rebalances its global crypto index, as Solana replaces XRP in the top 5 large cryptocurrency index.
The Hong Kong Virtual Asset Consortium (HKVAC) has made changes to its core cryptocurrency index. HKVAC removed XRP from the Top 5 Large Cryptocurrency Index, replacing the Ripple-affiliated coin with Solana (SOL).
According to the agency, the index rebalancing will take effect from January 19, 2024. It is worth noting that the HKVAC Top 5 index reflects the global cryptocurrency ranking by market capitalization.
Although the index mirrors the world’s crypto ranking by market cap, the digital asset group also considered other factors in its latest rebalancing. The HKVAC’s index ranks digital assets based on their market valuation, investability, as well as liquidity.
Solana Ousts XRP
Solana has been making significant strides in the crypto market lately and is ranked among the best-performing cryptocurrencies. Recall that the 2022 collapse of the FTX crypto exchange wreaked havoc on the price of SOL.
At the time, the crypto asset plunged over 95% in weeks to below $10. Interestingly, SOL made a remarkable comeback a year later, outpacing major cryptocurrencies like XRP. Notably, SOL has surged 436.5% over the past year.
At the time of writing, SOL is ranked as the fifth-largest cryptocurrency with a market cap of $39.92 billion. Conversely, XRP has only surged 51.5% in the same timeframe and is ranked as the sixth-largest cryptocurrency, boasting a valuation of $31.23 billion. XRP was down 3.9% over the past 24 hours to $0.57.
HKVAC’s Latest Changes Affect Other Cryptos
Meanwhile, HKVAC’s latest reshuffling also affected other top crypto assets, including Binance USD (BUSD) and Filecoin (FIL). Per its recent announcement, HKVAC removed FIL, BUSD, Maker (MKR), Ivy (IVY), and TrueUSD (TUSD) from its Global Large Cryptocurrency Index, replacing them with Near Protocol (NEAR), Internet Computer (ICP), Immutable (IMX), Optimism (OP), and Injective (INJ).
Similarly, Avalanche (AVAX) will replace Tron (TRX) on the HKVAC Top 10 Global Large Cryptocurrency Index with effect from January 19, 2024. This move is majorly attributed to AVAX’s tremendous surge over the past weeks. Following AVAX’s recent rally, the coin now sits as the 10th-largest cryptocurrency by market cap.
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