Why did Hong Kong’s Crypto Index Replace XRP with Solana?
The Hong Kong Virtual Asset Consortium (HKVAC) has made significant alterations to its primary cryptocurrency index, choosing to remove XRP from the Top 5 Large Cryptocurrency Index and replacing it with Solana (SOL).
Taking center stage is Solana, the high-performance blockchain platform, which will now occupy the position previously held by XRP. However, this change in the index rebalancing will not take effect until January 19, 2024.
While the HKVAC’s index generally reflects the global ranking of cryptocurrencies based on market capitalization, the agency takes into account various factors when making rebalancing decisions. These factors include market valuation, investability, and liquidity. Such considerations aim to provide a holistic evaluation of each digital asset’s position in the market.
Coinpedia previously reported that Solana had surpassed XRP in terms of market capitalization, securing its position as the fourth-largest cryptocurrency. During that period, XRP experienced a significant decline of over 95% in just a few weeks, falling below $10.
In contrast, Solana has made a remarkable comeback over the course of a year, surpassing major cryptocurrencies like XRP. In the past year alone, SOL has experienced an impressive surge of 436.5%. As of the latest data, SOL currently stands as the fifth-largest cryptocurrency with a market capitalization of $39.92 billion.
On the other hand, XRP, with a surge of 51.5% in the same period, is now ranked as the sixth-largest cryptocurrency, with a valuation of $31.23 billion. XRP has experienced a 3.9% decline in the past 24 hours, trading at $0.57.
In another adjustment, Avalanche (AVAX) will replace Tron (TRX) on the HKVAC Top 10 Global Large Cryptocurrency Index, effective from January 19, 2024. This change is due to AVAX’s recent surge, making it the 10th-largest cryptocurrency by market capitalization.
AVAX’s notable rally during a period when other cryptocurrencies faced a downturn contributed to its inclusion in the index. Currently, AVAX’s price has increased by 2.3% in recent days, with a market capitalization of around $13.42 billion.