ATHCoinIndex

Market indexes are one of the most important tools for the understanding of the financial market. Since the inception of the market itself, analysts have been calculating various methods to make this data more accessible to the general public. Now, with the total market cap of cryptocurrencies pushing $500 billion, there is a need for a detailed index which is simple, intuitive and accessible to novice and professionals alike.

What Is Coin Index Volume?

CoinIndexVolume is the index designed to make sense of burgeoning cryptocurrency market. It is meant to be a barometer for the current crypto market and also an investment vehicle which allows a passive investor participate in the growth potential of the cryptocurrency space. To achieve these goals the index needs to be diversified, have a deep coverage of the cryptocurrency space and as good a risk-adjusted performance profile as possible.

The index includes the Top 20 cryptocurrency and is adjusted to the market by changing the list and proportions of the cryptocurrencies entering the index #CIV20. It is fully automatic re-balancing and best practice for better result of a trading fund.

Their landing page shows you two detailed and customizable graphs. The first one is the graph of the total market cap of top 20 coins, whose duration is customizable to the user’s liking. The second graph is the pie chart which shows the share of individual coins among the top 20.

Problems Coin Index Volume Seeks To Solve

CoinIndexVolume’s task was complicated by a number of idiosyncrasies of the crypto market.

Volatility:

The market capitalizations of cryptocurrencies are quite volatile, and thus the top 20 have to be computed much more frequently than, say, the constituents of the S&P 500. CoinIndexVolume decided to do a full computation of the constituents every quarter, and then a re-weighing of the constituents in the index monthly. In addition, the volatility of the space makes it unreasonable to compute the top twenty cryptocurrencies based on the market cap on a single day. They smooth their data by using an exponentially weighted moving average of the market capitalization.

Number Of Cryptocurrencies:

New “coins” appear almost daily. They decided to use top 20 cryptocurrencies by market capitalization – the currencies below this cutoff are not very liquid (and so their inclusion would impair the performance of the index as an investment vehicle), and the top 20 capture more than 80% of the total cryptocurrency market capitalization.

Re-balancing Frequency:

The index is completely re-balanced every quarter (on quarter boundaries), and reweighed every month. This is necessitated by the rapid evolution of the cryptocurrency market.

Coin Index Volume CIV20 GuideCFT Benchmark Stats Solution

Now anyone can integrate CoinIndexVolume on their platform with their easy-to-use API. The data of the index will be provided in JSON format. Currently, the data can be used at your discretion for non-commercial purposes. For commercial use, users have to take a special permission from the Index administrators. Two types of data can be taken from CIV20’s API. The first one is the last updated data and the second Historical data of the coins within the index or the entire index in its totality. All time fields are Unix timestamps and Data update interval is approximately 5 minutes.

Coin Index Volume Conclusion

The CIV20 index is an accurate instrument for measuring the whole cryptocurrencies market. It represents a useful tool for investors, a benchmark for traders and asset managers, a replicable index for passive funds and ETFs. If they become popular, they could be the industry standard for the crypto ecosystem.

For more details of the product and their API, you can visit coinindexvolume.com/

LEAVE A REPLY

Please enter your comment!
Please enter your name here

2 × 2 =