dxFeed has launched the dxFeed Ethereum Blockchain Value Indices. The new indices family estimates the Ethereum blockchain’s value by composing a portfolio of representative tokens from that blockchain and computing its market price in real-time.
dxFeed Blockchain Value Index Family is based on the firm’s own methodology and consists of four indices (EMCN, EMC, EVTN, EVT). Configurations of each of them are available depending on a weighting scheme and whether the native token, ETH, is included in the set of index components or not.
Market cap weighting reflects a token’s relative “importance” for the blockchain in terms of its total “mass.” A weighting scheme based on the volume-to-turnover ratio assigns larger weights to more liquid tokens. The index composition remains relatively stable following periodic rebalancing procedures, especially considering the high volatility of the whole crypto asset class.
“dxFeed started its Index Management business line by creating products for different exchanges and companies, including SmallEx, MIAX, Clouty, and others. Now, when our professional quant team has grown and strengthened, dxFeed is constantly expanding its own indices line,” said Oleg Solodukhin, CEO of dxFeed.
An additional advantage of the new index family is that dxFeed leverages its access to large amounts of historical market data, including the transaction data of Ethereum-based tokens.
The firm started its indices pool in the fall of 2022 by introducing Bixie, a US Dollar Index (USDX) crypto-twin, Honest Gold (HAU), and Crypto Ortho 500 (COSM) Indices.