Research Summary
MarketVector Indexes™ has launched the MarketVector™ Token Terminal Fundamental Index Suite, a new approach to creating multi-token baskets. The suite includes the MarketVector™ Token Terminal Fundamental Index and the MarketVector™ Token Terminal Fundamental Cap-Weighted Strategy Index. These indexes emphasize on-chain criteria and prioritize fee revenue and active users as key indicators of a token’s value. The indexes also offer customization features that allow clients to tailor them to their specific investment needs and goals.
Key Takeaways
Introduction of Innovative Indexes
- Launch of New Index Suite: MarketVector Indexes™ has announced the launch of the MarketVector™ Token Terminal Fundamental Index Suite. This suite includes the MarketVector™ Token Terminal Fundamental Index and the MarketVector™ Token Terminal Fundamental Cap-Weighted Strategy Index. These indexes offer a new approach to creating multi-token baskets in the rapidly evolving cryptocurrency market.
- Emphasis on On-Chain Criteria: The new indexes stand out in the saturated market by emphasizing on-chain criteria. This ensures the selection of tokens that have significant economic value and user traction, providing a sophisticated approach to index construction.
Key Features of the Indexes
- Innovative Token Selection: The strategy at the core of these indexes is the use of fundamental on-chain data that measures the actual usage of blockchain protocols. This innovative token selection process is a key feature of the new indexes.
- Focus on Fundamental Metrics: The selection process of the indexes prioritizes fee revenue and active users as key indicators of a token’s value. This focus on fundamental metrics is another distinguishing feature of the indexes.
- Dual Weighting Schemes: The suite offers two versions for token weighting: one fundamentally oriented and the other based on market capitalization. This caters to different investment strategies, providing flexibility to investors.
Customization Features
- Adaptable to Specific Investment Needs: 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.
- Use of Extensive Range of On-Chain Metrics: The indexes allow 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.
Actionable Insights
- Consider the Importance of On-Chain Criteria: The emphasis on on-chain criteria in the new indexes highlights the importance of such data in assessing the value of tokens. Investors and market participants may want to consider incorporating on-chain data into their own analysis and decision-making processes.
- Explore the Use of Fundamental Metrics: The focus on fundamental metrics such as fee revenue and active users in the selection process of the indexes suggests that these factors can be key indicators of a token’s value. This could be a valuable insight for those looking to evaluate potential token investments.
- Consider the Benefits of Customization: The customization features of the indexes demonstrate the potential benefits of tailoring investment tools to specific needs and goals. Investors may want to explore how they can customize their own investment strategies and tools to better align with their objectives and risk appetite.
