Metaverse Index - August Rebalance

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 August 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.

For this rebalance, we decided to completely remove MEME from MVI as a function of both poor DEX liquidity, and low market cap. On the liquidity side, there’s only $1.6m of DEX liquidity and the token is only traded on one venue, meaning no arb volume. We believe that if our MEME position is to get any bigger we wouldn’t be able to exit it at all. On the market cap side, the inclusion criteria for MVI is $30m circulating market cap. Not only is MEME’s spot circulating market cap below $20m, but its 90-day average circulating market cap is $12.6m.

Overall, we see liquidity improving across the ecosystem and most tokens in MVI finding some V3 liquidity as well. In fact, 2 tokens now have best execution via V3 and we see that number potentially doubling next month.

There are no new token additions in this month’s rebalance.