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 September 30th 2021
Here’s the change in allocations with “current” allocation taken at the time of writing.
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 removed MUSE from MVI due to low market cap. The inclusion criteria for MVI has so far been $30m circulating market cap. Not only is MUSE’s spot circulating market cap below $12m, but its 90-day average circulating market cap is around $20m. Personally, we are big fans of what the team over at NFT20 are doing and hope we can add the MUSE token back in the near to medium-term.
There are no new token additions in this month’s rebalance.
On the methodology front, we are making a small change to our inclusion criteria, in what we see as the 0.1 version of the methodology. Specifically, we are increasing the circulating market cap inclusion criteria from $30m to $50m. The space has grown considerably in the last 6 month and so has the Metaverse Index. Projects below $30m can no longer have a meaningful weight or impact on the index and, more often than not, lack on-chain liquidity. Furthermore, we are seeing more and more projects get through our initial screens. That’s not a bad thing per se but the success of Axie Infinity as well as the general hype around NFTs is bringing a lot of questionable actors into the space. Overall, we see increasing the circulating market cap inclusion criteria as a marginal improvement of the methodology.