Objective of the Metaverse Index (MVI):
MVI is designed to capture the trend of entertainment, social activity and business moving to take place in virtual economies, powered by NFTs and blockchain technology. 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 December 31st 2021:
Here’s the change in allocations with “current” allocation taken at the time of writing.
We continued to use spot liquidity and spot market caps at the of the month to calculate the weights.
This month we have one new addition, the Rally token (RLY). Rally is a platform that allows anyone to create a social token, even without prior experience using crypto. As a platform, it fits neatly into our recently announced definitions of Metaverse token categories. When considering the composition of MVI, we felt that including individual brand / community / personal tokens doesn’t fit MVI’s mandate and will become more difficult as they proliferate in future. However, social tokens do allow anyone to form a digital bank account around their reputation and build a community from scratch. This is a textbook definition of life moving to digital environments powered by blockchain and NFTs. Having Rally as a ‘social token aggregator’ of sorts, allows MVI to capture this segment without the challenge of choosing between the thousands of social tokens themselves.
We are continuously assessing tokens for both inclusion and exclusion, based on market caps, liquidity and, more recently, categories as we want MVI to capture the broader Metaverse narrative, not just the gaming part of it.