Cryptocurrency data juggernaut CoinMarketCap announced earlier this week that it had launched two cryptocurrency benchmark indices across NASDAQ GIDS, Bloomberg Terminals, Thomson Reuters Eikon, and Börse Stuttgart.
CoinMarketCap claims that the indices will be “the most comprehensive ones on the market,” adding that they cover the top 200 cryptocurrencies by market cap and that they will help users “quickly reference and track the general performance of the cryptocurrency market.”
The first index is called the CMC Crypto 200 Index (CMC200). It includes Bitcoin and essentially covers more than 90% of the entire cryptocurrency market. The second, called the CMC Crypto 200 ex BTC Index (CMC200EX), was created to track the altcoins market without the gigantic influence of bitcoin. Both indices are calculated and administered by Solactive AG, the German index provider behind the CBOE Bitcoin Futures Index.
The indices were added to the features and products line recently introduced by CoinMarketCap and aimed at enhancing transparency, such as FCAS metric (The Fundamental Crypto Asset Score) by Flipside Crypto, which covers factors and indicators such as developer activity and a broad set of transaction data.
NexChange’s Olga Yaroshevsky spoke to Carylyne Chan, CoinMarketCap’s Global Head of Marketing, about the launch:
OY: Do you see these indices launch as the next big step for convergence of the crypto and traditional markets?
CC: We see the launch of the indices as just the first step in bringing crypto to the wider financial market. As you know, all other major asset classes have benchmarks, and to really bring crypto mainstream, we need one of our own for the industry to have greater visibility and acceptance in the mainstream. We hope that by making it easy for people to reference crypto as a market, they will find crypto much more accessible, and bring more excitement and interest into the space.
OY: Why is it important to divide Bitcoin and altcoins performance analysis?
CC: Bitcoin Dominance, one of the terms we use to measure the value of bitcoin market cap compared to others, is currently still hovering around 50% of the market. Its influence on the general market cap, whether sentiment or even pure asset correlation, is still big. So we wanted to create an index without this influence of bitcoin to show how the rest of the market is doing without it. In the near future, we will also launch a Bitcoin Reference Price Index.
OY: After adding FCAS and launching indices, what do you see as the next big step for CMC to become a data standard for crypto?
CC: One of the other things we’re doing is working with our partner Vela to deliver crypto data in high fidelity through a SuperFeed, at trading venues and on protocols that institutions are already familiar with. Making crypto data available to this wider audience is a key tenet of what we will continue in the long term. Additionally, we have new mobile apps coming soon that will put the data in more consumers’ hands together with additional crypto education. We also will introduce more real-time data and other data products within the year. We have a lot left to do here, so you know we’re always working hard and listening to what our users need!
The new indices might completely revolutionize the way that cryptocurrencies are evaluated. Yet the data giant has more aces in the hole – their first Android application for tracking crypto data is scheduled for release in early April this year.
Make sure to watch Carylyne Chan speaking on Global Blockchain Landscape on stage of Hong Kong Blockchain Week 2019: