Utility-Driven Index Shifts Crypto Focus from Market Cap
The S&P Pantera Digital Asset Index is shifting the focus in the crypto space from market capitalization to real utility, with the aim of creating a stronger connection between network activity and economic value.
The index, created through a partnership between S&P Global and Pantera Capital, will initially contain 18 altcoins, with six already identified: Ethereum, Solana, Tron, Hyperliquid, BNB, and Aave.
The selection process started with over 4,500 crypto assets listed on major exchanges, applying a minimum market capitalization of $500 million. Revenue generated over two consecutive quarters was then assessed, narrowing down the list to the top 30 revenue-generating projects.
The framework behind the index is value accrual, which considers not just revenue but also active users, transaction activity, speed, practical use cases, and the extent to which value is returned to token holders.