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.
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 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.