Hong Kong’s Crypto Index Drops XRP for Solana: What’s Behind the Decision?

Hong Kong Virtual Asset Consortium (HKVAC) has implemented significant changes to its primary cryptocurrency index, opting to exclude XRP from the Top 5 Large Cryptocurrency Index and introducing Solana (SOL) as its replacement.

Solana Takes the Spotlight

The HKVAC, known for providing ratings of digital asset trading platforms and crypto market indexes, announced the removal of Ripple’s XRP from its top 5 global crypto index. Solana, the high-performance blockchain platform, will take its place. However, the index rebalancing is set to be effective from January 19, 2024.

While the HKVAC’s index generally reflects the world’s crypto ranking by market cap, the agency considers multiple factors in its rebalancing decisions. The key criteria include market valuation, investability, and liquidity. These considerations aim to provide a comprehensive evaluation of each digital asset’s standing in the market.

Last month, Coinpedia reported that Solana had surpassed XRP in market capitalization, securing its position as the fourth-largest crypto. During that period, XRP faced a notable decline of over 95% in a few weeks, dropping below $10. 

Solana, on the other hand, experienced a remarkable comeback over the course of a year, surpassing major cryptocurrencies like XRP. Over the past year, SOL has seen an impressive surge of 436.5%. As of the latest data, SOL currently stands as the fifth-largest cryptocurrency with a market cap of $39.92 billion. 

In contrast, XRP, with a 51.5% surge in the same timeframe, is now ranked as the sixth-largest cryptocurrency, boasting a valuation of $31.23 billion. XRP experienced a 3.9% dip over the past 24 hours, trading at $0.57.

AVAX Replaces TRX on Top 10 Index

In another adjustment, Avalanche (AVAX) is set to replace Tron (TRX) on the HKVAC Top 10 Global Large Cryptocurrency Index, effective from January 19, 2024. This move is attributed to AVAX’s recent surge, propelling it to become the 10th-largest cryptocurrency by market cap. 

AVAX’s notable rally during a period when other cryptos faced a downturn contributed to this change in the index. In the meantime, AVAX’s price has increased 2.3% in recent days and is currently hovering around $13.42 billion in market capitalization.