FRANKFURT, Germany (December 5, 2023) — While the cryptocurrency market rapidly evolves and investors seek innovative approaches to the sector, MarketVector IndexesTM (“MarketVector”), a pioneer provider in digital assets indexing, today announced the launch of the MarketVectorTM Token Terminal Fundamental Index Suite, a groundbreaking approach to creating multi-token baskets.

Within this suite of indexes are the MarketVectorTM Token Terminal Fundamental Index and the MarketVectorTM Token Terminal Fundamental Cap-Weighted Strategy Index.

“With over 20,000 tokens available, selecting the right coin is a daunting task for investors,” said Martin Leinweber, Digital Asset Product Strategist at MarketVector. “The market is saturated with speculative investments. Our index stands out by emphasizing on-chain criteria, ensuring the selection of tokens that have significant economic value and user traction. The digital asset landscape demands a sophisticated approach to index construction. We believe that the next cycle of crypto adoption will be driven more by fundamentals than the previous cycles.”

Key Highlights of the Indexes:

  • Innovative Token Selection: At the heart of this strategy is the use of fundamental on-chain data that measures the actual usage of blockchain protocols.
  • Focus on Fundamental Metrics: The selection process prioritizes fee revenue and active users as key indicators of a token's value.
  • Dual Weighting Schemes: The suite offers two versions for token weighting: one fundamentally oriented and the other based on market capitalization, catering to different investment strategies.

“In contrast to traditional market cap-based indexes, these new indexes leverage fundamental data in their methodology to better capture the financial and user traction of blockchains and decentralized applications,” said Rasmus Savander, Commercial Lead at Token Terminal.

“We believe that fundamentals-based indexes will only grow in popularity as the crypto market continues to mature, and more focus is given to transparently accessible on-chain fundamentals,” 

MarketVector's fundamental indexes include customization features that empower clients to tailor them to their specific investment needs and goals. This flexibility allows for the selection of custom closing times for prices, catering to different global market hours, and the use of an extensive range of on-chain metrics and fundamental ratios from Token Terminal. Clients can refine selection criteria and adjust the weighting of metrics like fees, active users, transaction volume, and more, according to their own analysis and risk appetite. This innovative approach transforms the index into a dynamic, adaptable tool, perfectly aligned with each client's unique investment strategy and market outlook.

Detailed information about the indexes, including methodology details and index data, is available on the MarketVector website.

 

Press Release

Most popular