In a notable development, the Hong Kong Virtual Asset Consortium (HKVAC) has recently updated its global cryptocurrency indices. This revamp has led to significant changes in the rankings of top digital assets, notably excluding Ripple’s XRP from its prestigious top five index. In its place, Solana, a rising star in the crypto space, has been introduced following its impressive market capitalization growth.
This change underscores a shifting landscape in the crypto market. Back in December 2023, a Cointelegraph report highlighted Solana’s leap over XRP, marking it as the fourth-largest cryptocurrency by market cap. This ascent mirrors the dynamic nature of the digital asset industry, where market positions are constantly evolving.
Further adjustments in the HKVAC indices include the introduction of Avalanche (AVAX) into the top 10, taking the spot previously held by Tron’s token. This inclusion follows Avalanche’s significant surge in the market, even as other cryptocurrencies faced downturns in December 2023. Notably, Ryan Mcmillin, Chief Investment Officer at Merkle Tree Capital, attributed AVAX’s popularity to partnerships with major banks for asset tokenization projects.
Despite these changes, it’s worth noting that TRON has shown remarkable resilience, recovering from a steep decline during the 2018-2020 bear market. It managed a commendable 100% rally in 2023, indicating a strong comeback.
The HKVAC has also expanded its global large crypto index to include new entries such as Internet Computer’s token, Near Protocol, Optimism (OP), Injective (INJ), and Immutable (IMX). These additions reflect the growing diversity and innovation within the cryptocurrency sector.
Hong Kong continues to strengthen its position in the crypto industry. December 2023 saw its financial regulator preparing to welcome spot crypto exchange-traded funds (ETFs), following the approval of similar applications in the United States. However, the region’s Securities and Futures Commission mandates that crypto transactions related to these ETFs be conducted through licensed platforms or authorized financial institutions, ensuring a regulated and secure environment for digital asset trading.