- COIN50 captures 80% of crypto market cap, offering a balanced view of top digital assets’ performance.
- Unlike other indices, COIN50 spans diverse crypto sectors, including payments, media, and entertainment.
- COIN50 is tailored for global markets, with access limited to institutional and select retail traders.
Coinbase has launched the COIN50 Index, a new cryptocurrency benchmark that will follow the top 50 cryptocurrencies by market capitalization. The goal of this index is to present a clearer picture of the crypto market by concentrating on a small selection of crypto assets.
The COIN50 will tell the performance of the leading cryptocurrencies compared to the whole size of the market.
Objective Market Representation
The COIN50 Index seeks to mirror the S&P 500’s role in traditional finance by capturing a majority of the crypto market’s value. The index is weighted and selected according to market capitalization covering 80% of total crypto market. Bitcoin and Ethereum make up 50.3% of the index’s weighting and 27.5%, respectively.
Solana follows with 6.4%, while XRP and Dogecoin have smaller allocations. The remaining 45 cryptocurrencies share 11.2% of the total index weight, providing a diversified yet focused market snapshot.
Unique Sector Coverage
Unlike existing indices that emphasize infrastructure tokens, COIN50 is designed to encompass a variety of crypto sectors. In addition, the index includes categories such as media, payments, entertainment, and even meme coins. This broadens its scope beyond blockchain technology and smart contracts.
This broader approach reflects Coinbase’s strategy to present a well-rounded view of the crypto industry. As of this year, the index’s strongest-performing assets include Quant, ZCash, and Avalanche, which have contributed to an annual performance rate of 97.65%.
Coinbase Global Availability and Access Limitations
Coinbase primarily targets markets outside the United States, United Kingdom, and Canada with the COIN50 Index. Only eligible institutional traders can access the index through perpetual futures contracts on Coinbase International Exchange. Retail users in supported markets can engage with COIN50 via Coinbase Advanced.
This index follows Coinbase’s earlier attempt with the Coinbase Index Fund in 2018. Now, with COIN50, Coinbase aims to offer a reliable, diversified crypto benchmark that may compete with established indexes like the S&P Cryptocurrency Indices, bringing fresh insights into the digital asset landscape.
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