The Hong Kong Virtual Assets Consortium (HKVAC) has implemented significant changes to its core cryptocurrency index, choosing to exclude XRP from the index of the top 5 large cryptocurrencies and introduce Solana (SOL) as its replacement.
Solana steals the spotlight
HKVAC, known for providing ratings of digital asset trading platforms and cryptocurrency market indices, announced the removal of Ripple's XRP from the top 5 global cryptocurrency indices. It will be replaced by Solana, a high-performance blockchain platform. However, the index rebalancing is scheduled to become effective from January 19, 2024.
While the HKVAC index generally reflects the ranking of global cryptocurrencies by market capitalization, the agency takes into account multiple factors in its rebalancing decisions. The main criteria include market evaluation, investment capacity, and liquidity. These considerations are intended to provide a comprehensive assessment of each digital asset's position in the market.
Last month, Coinpedia reported that Solana had surpassed XRP in terms of market cap, securing its position as the fourth-largest cryptocurrency. During that period, XRP experienced a notable decline of over 95% in a few weeks, falling below $10.
Solana, on the other hand, has seen a remarkable comeback over the course of a year, outpacing major cryptocurrencies like XRP. Over the past year, SOL has seen a staggering 436.5% rise. According to the latest data, SOL is currently the fifth largest cryptocurrency with a market capitalization of $39.92 billion.
In contrast, XRP, with a 51.5% rise in the same time frame, is ranked as the sixth largest cryptocurrency, with a value of $31.23 billion. XRP saw a 3.9% decline over the past 24 hours, trading at $0.57.
AVAX replaces TRX in the top 10 indices
In another adjustment, Avalanche (AVAX) is set to replace Tron (TRX) in the HKVAC Index of Top 10 Large Global Cryptocurrencies, effective January 19, 2024. The move is attributed to AVAX's recent rise, which has pushed it to become the 10th largest company. Cryptocurrency by market capitalization.
AVAX's notable rise during a period when other cryptocurrencies faced a decline contributed to this change in the indicator. Meanwhile, AVAX's price has risen 2.3% in recent days and is currently hovering around $13.42 billion in market cap.
