Crypto Index Tracker – Big Jump in Metaverse Index

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Broader risk markets, including tech stocks, have bounced recently as markets appear to have priced a hawkish Fed. But the spillover to crypto markets has not been uniform.

Bitcoin has jumped five percent over the past week, but our metaverse index is the standout performer with a 21% surge (see charts one and two). Meanwhile, our overall smart contract platform index is up seven percent on the week. Finally, our DeFi index is up the least at four percent.

In terms of the breakdown within each index,

• Smart contract platform index – Cardano (ADA) is down the most at 1.4%, and Avalanche (AVAX) is up the most at 11.2%. Ethereum is up 9.9% on the week.
• DeFi index – PancakeSwap (CAKE) is down the most at 3.8%, and Maker (MKR) is up the most at 11.5%.
• Metaverse index – Mostly large gains across the board. The Sandbox (SAND) and Decentraland (MANA) are up the most at 36.2% and 35.4%, respectively. Axie Infinity (AXS) is up the least at 2.4%.
• Bitcoin index – This is up 4.8% on the week.

What are in the four indices?

Here are the indices in more detail.

• Bitcoin – The OG of crypto markets deserves its own category and is in many ways the true benchmark for any other crypto market.
• Smart contract platforms – After Bitcoin, the big innovation was to have blockchains that were more programmable. These could host smart contracts or decentralized applications and have allowed the emergence of the metaverse and DeFi. Ethereum (ETH) is the most popular version of smart contract platform. But we also include rivals Solana (SOL), Cardano (ADA) and Avalanche (AVAX). We also include Polkadot (DOT), which allows interoperability between blockchains and the use of smart contracts via parachains.
• Metaverse – Coins associated with the creation of a virtual space/digital world on the internet using a combination of augmented reality, virtual reality and social networks. One of the largest is this space is Axie Infinity (AXS), which is a play-to-earn gaming platform. Another is Decentraland (MANA), which is a virtual world that allows ownership of land among other things. The three other coins we include are The Sandbox (SAND), Enjin Coin (CNJ) and Gala (GALA).
• Decentralized Finance (DeFi) – Financial services built on top of blockchain networks with no central intermediaries. This can be a very broad category, so we narrow this down to platforms that focus on lending and borrowing or to yield farming. The five coins we have selected are Aave (AAVE), Maker (MKR), Compound (COMP), Uniswap (UNI) and PancakeSwap (CAKE).

Disclaimer

The commentary contained in the above article does not constitute an offer or a solicitation or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs.

Bilal Hafeez is the CEO and editor of Macro Hive. He spent over twenty years doing research at big banks – JPMorgan, Deutsche Bank and Nomura – where he had various ‘global head’ roles and did FX, rates and cross-markets research.