Solana Climbs into Hong Kong’s Top 5 Crypto Rankings, Pushing Out XRP

The HKVAC, a prominent Hong Kong-based digital asset agency, underwent a significant index rebalancing earlier this month as it removed XRP and added Solana to its Top 5 Cryptocurrency Index. The replacement of XRP with SOL at the number five spot in the index reflects SOL’s rising prominence in the global crypto market over the past year.

HKVAC Announces Changes

The agency released a statement on January 12th outlining several adjustments to multiple indexes. It noted that Solana would replace XRP in the HKVAC Top 5 Global Large Cryptocurrency Index and the Equal-weighted Index of the Top 5 virtual assets by market capitalization. While market cap was the primary consideration, other factors like liquidity and instability also factored into HKVAC’s listing decisions. In removing XRP, the firm aimed to better align its indexes with the current rankings of the largest cryptocurrencies by trade volume and overall market size.

Additions and Exits Across Other Indexes

Alongside SOL replacing XRP, several other adjustments were announced. The HKVAC Global Large Cryptocurrency Index introduced five newer cryptos – Internet Computer, NEAR Protocol, Optimism, Injective, and ImmutableX. At the same time, it removed lesser-known projects like TrueUSD, Binance USD, Ivy, Filecoin, and Maker from the index. These additions and exits also applied to the Large Cryptocurrency Index, except for Bitcoin, Ethereum, and stablecoins. Meanwhile, the Top 10 index witnessed Avalanche replacing Tron with equal adjustments to its equal-weighted counterpart. Finally, Maker, Lido DAO, Mantle, Quant, and Arbitrum exited the Top 10 list.

Market Impact of the Changes

The replacement of XRP with SOL at the number five spot in HKVAC’s premier index sent ripples through crypto markets. It validated SOL’s surge in trade volumes and popularity, allowing it to surpass XRP’s ranking. Investors viewed the change as a stamp of approval on SOL’s growing stature. In the days since the announcement, the SOL price pulled back along with other majors amid a brief downturn. It trades around $98, down from highs over $120 in December yet well above levels from a year ago. XRP declined but has struggled to reclaim $1, unlike its highs late last year. The adjustment highlighted how quickly the fortunes of significant cryptocurrencies can turn as new projects challenge incumbents.

Rebalancing its indexes by the prominent HKVAC agency represented one of the most significant developments in the crypto space in 2024. Removing XRP and several lesser-ranking assets aimed to ensure its premier listings accurately reflected the true leaders in an evolving industry. It was replacing XRP with SOL as the number five crypto, validating the latter’s exponential growth in trading volumes and overall popularity. It demonstrated how quickly rankings can change as new projects emerge to challenge long-standing veterans. The adjustments sent ripples through global crypto markets and highlighted the dynamic nature of this nascent sector.