In December 2023, Solana (SOL) surpassed Ripple’s XRP to become the 5th largest cryptocurrency. As a result, Hong Kong-based digital asset agency HKVAC has undergone index rebalancing, announcing that their Top 5 Global Large Cryptocurrency Index will include SOL and remove XRP starting January 19, 2024.
The addition of Solana to the HKVAC Top 5 Index aligns with the global crypto rankings by market cap, but it also considers other important factors such as liquidity and investability. This change will also impact the HKVAC Equal-weighted Index, where SOL will replace XRP.
In addition, the HKVAC Global Large Cryptocurrency Index will introduce Internet Computer (ICP), NEAR Protocol (NEAR), Optimism (OP), Injective (INJ), and Immutable (IMX), while removing TrueUSD (TUSD), Binance USD (BUSD), Ivy (IVY), Filecoin (FIL), and Maker (MKR).
These new additions will also be reflected in the HKVAC Large Cryptocurrency Index (excluding Bitcoin, Ethereum and Stablecoins), with Maker (MKR), LidoDAO (LDO), Mantle (MNT), Quant (QNT), and Arbitrum (ARB) being removed.
Furthermore, Avalanche (AVAX) will replace Tron (TRX) in the Top 10 Global Large Cryptocurrency Index, as well as the Equal-weighted Index of the Top 10 Global Large Cryptocurrencies.
In terms of price, Solana has recently experienced a significant pullback after a rally in December 2023, dropping below $100 from a high of $120. As of January 12, the SOL price is at $98.21, down 2.44%. This decline is part of a larger bearish trend in the crypto market, with SOL’s 24-hour trade volume also decreasing by 20.36% to $3.69 billion and a market capitalization of $46 billion.
Similarly, XRP has also been affected by the market downturn, with a 1.45% dip to $0.5929 and a 25.24% decrease in trade volume to $1.88 billion. Its market cap is currently at $32 billion.
In conclusion, the recent restructuring of the HKVAC indices highlights the constantly evolving landscape of the cryptocurrency market, with Solana’s rise and XRP’s fall being significant changes to note.
Furthermore, the market dips for both SOL and XRP serve as a reminder of the volatility of the crypto market and the need for investors to carefully consider all factors before making investment decisions.