Crypto Analyzer

Solana Ousts XRP from Hong Kong’s HKVAC Top 5 Crypto Index

Solana, a blockchain platform designed for decentralized applications and crypto tokens, has made significant strides in the cryptocurrency space. In December 2023, Solana (SOL) overtook Ripple’s XRP to become the 5th largest cryptocurrency, marking a major milestone for the project. This development has not only impacted the global crypto rankings by market cap but also spurred changes in the composition of Hong Kong’s HKVAC Top 5 Global Large Cryptocurrency Index.

As a result of SOL’s ascent, the HKVAC agency has announced a rebalancing of its Top 5 Global Large Cryptocurrency Index. The rebalancing includes the addition of SOL and the removal of XRP from the index, with the changes set to take effect from Friday, January 19, 2024.

The HKVAC Index adjustments take into consideration various factors beyond market cap, including liquidity and investability, to provide investors with a comprehensive view of the cryptocurrency landscape. Solana’s inclusion in the index signifies its growing prominence and potential as a key player in the cryptocurrency market.

Additionally, the agency’s release highlighted other changes to the HKVAC Global Large Cryptocurrency Index, such as the introduction of 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).

The adjustments also extend to the HKVAC Large Cryptocurrency Index, with new entrants joining the index and others exiting, reflecting the dynamic nature of the crypto space. Moreover, Avalanche (AVAX) is set to replace Tron (TRX) in the firm’s Top 10 Global Large Cryptocurrency Index.

In light of Solana’s recent rally and subsequent pullback, the cryptocurrency market has witnessed fluctuations. The price of SOL experienced a decline, falling below the $100 mark after surpassing $120 in December 2023. At the time of the report, SOL was priced at $98.21, down by 2.44% on Friday, January 12, with a 24-hour trade volume of $3.69 billion and a market capitalization of $46 billion.

Conversely, XRP also faced market pressures, with its price falling by 1.45% to $0.5929 on Friday and a trade volume decrease of 25.24% to $1.88 billion in the last 24 hours, resulting in a market cap of $32 billion.

The adjustments in the HKVAC Index and the fluctuations in the prices of Solana and XRP reflect the dynamic and competitive nature of the cryptocurrency market, which continues to evolve as new projects and developments emerge. As Solana’s influence grows and the crypto market landscape shifts, these changes in the index and price movements serve as a barometer of the industry’s ongoing developments and fluctuations.