Pre-Rebalance Report for the Metaverse Index on 2023-06-01
Posted on Behalf of the IMC (@afromac, @sidhemraj, @MrMadila)
Product: Metaverse Index (MVI)
Rebalance Date: 2023-06-01
Methodologist: Index Coop Internal Methodologist Committee
Introduction
This report outlines the proposed changes to the Metaverse Index, providing stakeholders with a comprehensive overview of the new index constituents, weights, and significant changes to the index composition. The last rebalance was conducted on 2023-03-01, and the pending rebalance is scheduled for 2023-06-01.
Objective
The objective of MVI is to reflect the trend of Metaverse and Gaming activities in virtual economies powered by blockchain technology and NFTs, replacing the previous objective of capturing entertainment, social activities, and businesses in virtual economies powered by blockchain technology and NFTs.
Asset Inclusion Criteria
Eligible tokens must meet the following criteria:
- Must be ERC-20 tokens on the Ethereum blockchain
- Must be categorized in one or more of the following categories on CoinGecko: NFTs 1, Gaming, and Metaverse, or categorized as Metaverse or NFTs 1 by Messari
- The primary asset’s market capitalization must be at least 75,000 ETH as of the data collection date
- The token must have a median daily decentralized exchange trading volume of at least $100,000 in the 30-day period preceding the data collection date
- Tokens must have at least three months of on-chain liquidity and price history, as well as three months of operation history
- An independent security audit must have been performed on the protocol, and the results must have been reviewed by the product methodologists
- If no audit has been performed, the methodologists will apply subjective judgment based on an assessment of the criteria above and communications with the team.
Asset Weighting Methodology
The weight of constituents in MVI will be determined by a combination of square root market capitalization and decentralized exchange volume.
Weight = 0.75 * SRMW + 0.25 * DVM
SRMW = Square Root of Market Capitalization / Sum of the Square Root of Market Capitalization across all eligible assets
DVM = DEX Volume / Sum of the DEX Volume across all eligible assets
Current Index Composition:
| Symbol | Price | Prior Weight |
|---|---|---|
| APE | $3.24 | 21.5% |
| SAND | $0.51 | 11.1% |
| MANA | $0.47 | 10.7% |
| LOOKS | $0.15 | 10.2% |
| AXS | $6.92 | 9.8% |
| IMX | $0.74 | 8.5% |
| GALA | $0.03 | 7.4% |
| ENS | $9.94 | 6.5% |
| ENJ | $0.33 | 6.4% |
| ILV | $47.52 | 5.8% |
| AUDIO | $0.24 | 5.8% |
| MC | $0.22 | 3.6% |
| WETH | $1,806.01 | 1.1% |
New Index Composition:
| Symbol | Price | Weight |
|---|---|---|
| APE | $3.24 | 17.2% |
| GALA | $0.03 | 16.0% |
| RNDR | $2.70 | 10.7% |
| BLUR | $0.49 | 9.4% |
| SAND | $0.51 | 8.6% |
| MANA | $0.47 | 8.4% |
| AXS | $6.92 | 7.8% |
| IMX | $0.74 | 7.8% |
| ILV | $47.52 | 5.1% |
| ENS | $9.94 | 4.7% |
| FET | $0.24 | 4.3% |
Constituents Removed:
The following tokens are being removed from the index
- ENJ
- AUDIO
- MC
- LOOKS
Constituents Added:
BLUR: Blur
Market Cap: $235,954,181
Median 30-Day DEX Volume: $96,248,883
“$BLUR is the governance token for the Blur NFT marketplace. The token will allow Blur to decentralize its NFT marketplace by putting controls into the hands of the community. This is in contrast to its competitor, Opensea which operates as a company with private investors and does not have a token.
The Blur team hopes to expands its vision as the leading NFT marketplace for pro traders with the Blur token. Airdrop campaigns are still ongoing which will reward loyal users and liquidity providers.” (Source: Coingecko)
RNDR: The Render Network
Market Cap: $980,094,714
Median 30-Day DEX Volume: $37,364,743
“RNDR is an ERC-20 compatible utility token used to pay for animation, motion graphics and VFX rendering on the distributed RNDR Network, which is a peer-to-peer GPU compute network that connects creators in need of additional computation power for rendering their scenes, to providers that receive RNDR tokens for their GPU power. It allows complex GPU-based render jobs to be distributed and processed on a P2P network, making the transactional process of rendering and streaming 3D environments, models, and objects simpler for end users.” (Source: Messari)
FET: Fetch.ai
Market Cap: $219,715,975
Median 30-Day DEX Volume: $3,031,000
“Fetch.AI is an open-source decentralized machine learning platform based on a distributed ledger that provides users access to AI in the format of secure datasets.
On the Fetch.ai network, a series of software agents represent and act on behalf of their owners. These autonomous agents work to provide an optimized service across a variety of ecosystems, benefitting both suppliers and consumers. The Fetch.Ai framework aims to support billions of IoT devices to facilitate seamless communication in an automated and secure manner. Fetch.AI autonomous agents have the ability to conduct searches, negotiate and trade knowledge, and share both predictions and value.” (Source: Messari)
Implementation:
The relevant dates for the upcoming rebalance are
Data Collection Date: 2023-05-25
Pre-Rebalance Report Date: 2023-05-29
Rebalance Date: 2023-06-01
Post-Rebalance Report Date: 2023-06-08
There is no need for token holders or distribution partners to take any action.
Summary:
The Metaverse Index (MVI) will see a be rebalanced on June 1st, 2023 with the following changes to the composition:
- Four tokens that no longer meet the updated criteria will be removed
- RNDR, BLUR and FET will be added to the index as leading projects in their respective categories
Raw data can be found here