The MVI Methodology
The MVI methodology ensures that the index composition accurately reflects the metaverse market. It considers factors such as market capitalization, trading volume, and project quality to select tokens that have a significant presence and potential impact in the metaverse industry. This methodology provides a robust framework for tracking the performance of the metaverse market.
Here are the steps involved in the MVI methodology:
- Gather a list of tokens that meet the MVI criteria.
- Calculate the square root of market capitalization for each token.
- Calculate the DEX liquidity for each token.
- Weight the tokens in the index according to their square root of market capitalization and DEX liquidity.
- Rebalance the index quarterly.
The MVI methodology is a transparent and objective way to track the performance of the metaverse industry. It is a good way to gain exposure to the metaverse industry without having to pick individual tokens or projects.
What is the Metaverse Index ?
The Metaverse Index (MVI) is designed to capture the trend of social activity, entertainment powered by NFTs and blockchain technology. It uses a combination of the square root of market cap and DEX liquidity to arrive at the final index weights. The article focuses on discussing Metaverse Index in detail.
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