May Rebalance Metaverse Index

Objective of the Metaverse Index (MVI):

The Metaverse Index (MVI) is designed to capture the trend of entertainment, sports and business shifting to take place in virtual environments. The MVI uses a combination of the square root of market cap and liquidity weighting to arrive at the final index weights.

MVI Rebalance Weights:
Weights were calculated as of May 31st 2021

Here’s the change in allocations with “current” allocation taken at the time of writing.

Rebalance summary:

The above weights were calculated based on the average market cap and liquidity during the determination phase, which is always the last 7 days of the month.

During May, we continued to see outperformance in some of the large cap tokens, including ENJ and MANA. This led to the trimming of allocations to these tokens. We have also seen a meaningful impact of liquidity on the new weights. Specifically, while RFOX, DG and AXS performed roughly in line with the rest of the portfolio, they suffered large drops in liquidity leading to the reduction of their weight in the portfolio. On the opposite side, SAND and NFTX benefited from strong liquidity dynamics and WAXE both outperformed and maintained consistently high liquidity.

Additionally, the MVI will have no new token additions in this month’s rebalance.