finbold.com
Coinbase Institutional announced it is adding five new cryptocurrencies to the Coinbase 50 Index (COIN50), suggesting these are promising investments. The index counts with a “robust methodology” to diversify with a “rigorous fundamental and eligibility screening,” as Coinbase describes it.
On December 2, the official account posted about the update on X, mentioning the five additions. As communicated, Axie Infinity (AXS), Blur (BLUR), Jasmy (JASMY), Kusama (KSM), and MultiversX (EGLD) have joined the Coinbase 50 Index.
How is the Coinbase 50 Index built?
With quarterly rebalances, the Coinbase 50 Index currently consists of 50 cryptocurrencies weighted by their circulating market cap. In particular, the top three assets—BTC, Ethereum (ETH), and Solana (SOL)—account for 85% of the total allocations. Each has 50%, 28.8%, and 6.4% of the COIN50 weight, respectively.
Ripple (XRP) and Dogecoin (DOGE) sum up to the top five with 2.9% and 1.4% each. The 45 other assets account for 10.4% of the index, now adding AXS, BLUR, JASMY, KSM and EGLD.
Interestingly, JASMY, EGLD, AXS, BLUR, and KSM rank in the 35th, 37th, 38th, 46th, and 48th positions of COIN50, respectively. Their index weights go from 0.08% to 0.03%, according to the Coinbase 50 Index fact sheet.
Comparatively, they are ranking in the 64th (JASMY), 92th (EGLD), 84th (AXS), 126th (BLUR), and 135th (KSM) positions from CoinMarketCap. Thus, surging to meet Coinbase Institutional’s rank expectations would mean a significant price increase for each of these digital assets.
While prices and, then, the market cap of cryptocurrencies can quickly change with high volatility, looking at index ranks can give investors a solid benchmark to spot over or undervalued assets to buy and build their own portfolios.
Featured image from Shutterstock.