- Solana joins the prestigious HKVAC Index.
- Ripple was excluded from Hong Kong’s major crypto index.
- The index reflects Solana’s strong performance in 2023.
After its collapse following the FTX bankruptcy, Solana witnessed a significant recovery. Most recently, a major Hong Kong crypto index posted updates reflecting its performance.
The Hong Kong Virtual Asset Classification (HKVAC) Top 5 Index, a critical barometer of crypto market trends, has included Solana while simultaneously ditching Ripple (XRP).
HKVAC Index: Solana Ascends, Ripple Descends
On January 12, 2024, the Hong Kong Virtual Asset Classification (HKVAC) made a pivotal announcement, revealing changes to its core cryptocurrency index. The HKVAC index, a widely recognized benchmark in the cryptocurrency sector, periodically reviews and adjusts its composition to accurately reflect the current market landscape.
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This recent revision, effective from January 19, 2024, added Solana (SOL) to the HKVAC Top 5 and removed Ripple (XRP). Solana’s addition to the index is a testament to its growing stature and acceptance within the crypto market.
Alongside Solana and Ripple, other cryptocurrencies have been affected by the HKVAC index reshuffle. For instance, Internet Computer (ICP), NEAR Protocol (NEAR), Optimism (OP), Injective (INJ), and Immutable (IMX) were added to the Global Large Crypto Index.
At the same time, TrueUSD (TUSD), Binance USD (BUSD), Hedera Hashgraph(HBAR), Filecoin (FIL), and Maker (MKR) were removed.
Solana’s Remarkable Recovery Post-FTX Collapse
Solana’s journey through 2023 has been marked by a significant recovery, demonstrating resilience in the face of adversity. The aftermath of the FTX collapse in late 2022 had a detrimental impact on Solana (SOL), primarily due to its association with the exchange and Alameda Research. SOL’s price plummeted, falling 95% to under $10, one of the biggest declines in the crypto market that year.
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Despite the challenges, Solana made an astounding comeback in 2023. It witnessed a near 1,215% rise from its cycle low of $8.27 in December 2022, outperforming other major cryptocurrencies, including Bitcoin.
At the time of writing, Solana’s market cap is $42 billion, with a trading price of $98 per token. In contrast, XRP’s market cap is $10 billion less, at $32 billion, trading at $0.5907.
On the Flipside
- Changes in major indices like the HKVAC can influence the broader cryptocurrency market. Solana’s inclusion and Ripple’s exclusion could prompt investors to reassess their portfolios.
- Ripple’s removal from the HKVAC Index might reflect not just market performance but also the impact of its ongoing legal and regulatory challenges.
Why This Matters
The recent reshuffle in the HKVAC Index, especially the inclusion of Solana and the exclusion of Ripple, marks a significant shift in crypto: Solana’s remarkable recovery marks its potential as a formidable player in the crypto space.
Read more about Solana’s recovery:
Solana Network Activity Marks New High as SOL Moves Past $120
Read more about the competition in the ETF market:
CoinShares Acquires Valkyrie to Corner Bitcoin ETF Market
