Perhaps all crypto investors are familiar with indexes such as Total cap (BTC cap + ALTS cap), Total2 (ALTS cap), Total3 (ALTS cap - ETH cap), Stablecoin cap, BTC.D. These indexes have the advantage of giving us an overview of the development and distribution of the market in terms of capitalization, but they have noise associated with stablecoins and do not give us a clear view of market volatility. Clearly, we need more indexes for the crypto market similar to the DJIA or S&P500 for stocks.
A new crypto market price tracking index has been launched by Wintermute and The Block. This index, called GMCI 30, tracks the top 30 cryptocurrencies by market capitalization:
“GMCI indices are designed to bring transparency and simplicity to this quickly evolving asset class, tracking the performance of the entire industry as well as its sub-sectors is going to become incredibly simple[1].”GMCI 30 is calculated by taking the weighted average price of the 30 constituent assets. GMCI 30 does not include stablecoins and only includes assets listed on certain exchanges and custodians. The weighting is based on the market capitalization of each asset. The index is rebalanced quarterly.
I think the launch of GMCI 30 is a positive development for the crypto market. I hope it will provide investors and traders with more transparent and reliable data during market analysis. I really waited for the launch of this index on TradingView and started studying it carefully to detect the market behavior based on GMCI 30 chart. I hope that we will have a long enough history to refer to.
Do you think this GMCI 30 index is really valuable for the crypto market? Are you willing to use it to analyze the crypto market? Is there any conspiracy theory from Wintermute to manipulate the market through GMCI 30?
[1]
Wintermute and The Block launch crypto price index