Metaverse Index - September 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 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.


Thanks Verto for this update. I don’t understand a simple thing. After rebalancing ILV has almost the same allocation as AXS. But Axie has 4 times the square root market cap than ILV. I thought it would be only 25% of the allocation then.

It’s not relly about how much one is bigger than another but as % of the total.

AXS is 23.1% of the aggregate square root of market cap, while ILV is 6.4%. That represents 75% of the weight.

The other 25% is liquidity where ILV is 61.9% of the aggregate liquidity, while AXS is 7.4%.

The total weight is 75%*RMCW + 25%*LW.

For AXS, that’s 75%*23.1%+25%*7.4%=19.2%
For ILV, that’s 75%*6.4%+25%*61.9%=20.3%

Hope that helps.


Ah. Ich forgot about the liquidity. Now it all makes sense. Thanks.

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