Our Market Index returned 380% above Bitcoin since 2021
The Real Total Crypto Market Cap Index
The Real TCMC Index – with over 10,000 coins is The Best Total Cryptocurrency Market Capitalization Index, analogous to the Wilshire 5000 and Dow Jones US Total Stock Market indices
Why a REAL Total Crypto Market Cap Index ?
Next to the underlying price of Bitcoin itself, Total Cryptocurrency Market Capitalization is the most widely quoted and well-known cryptocurrency data metric in the world.
Yet, while referenced and quoted every day by millions of people within the investment community as one of the key industry metrics, Total Cryptocurrency Market Capitalization is by definition solely a loose measure of worldwide crypto “interest”.
Total Cryptocurrency Market Capitalization (TCMC) includes “unproductive assets” such as stablecoins and double counts crypto backed assets such as wrapped tokens.
In order to turn TCMC into a useful financial market benchmark, a number of adjustments must be made. Enter Real TCMC or Real Total Crypto Market Cap.
Real TCMC ‘s definition is closer to what we are accustomed to look at when looking at the stock market, while double-counting certain assets simply feels wrong.
Hence, CMI’s Real Total Crypto Market Cap (Real TCMC) is by design the best index to track the crypto market’s performance. It is also the best crypto market benchmark to compare against.
Real TCMC = TCMC – stablecoins and asset-backed tokens
Real TCMC has been designed for cryptocurrency investors, traders, funds, DeFi users, and institutions. Not too surprisingly, the index is a better investment vehicle than Bitcoin itself, and a much safer approach than trying to pick single coins. The index profits from the unforecastable raise of some cryptocurrencies, while limiting the losses deriving from the fall of others. With more than six years of historically back-tested data, the Tracker aims to serve as the most complete view of the crypto market for investors and academics alike.
Our indices are free to use. Get your API key.
Learn more about CMI Indices methodology.
The Real TCMC Index Tracker
The Real TCMC Index Tracker – with less than 0.25% tracking error is the Best Real Total Cryptocurrency Market Capitalization Index Tracker
The Real Total Crypto Market Cap (Real TCMC) Index Tracker has been developed by CryptoMarketQuants and tracks the return of the overall cryptocurrency market. It has been developed to track the Real Total Market Capitalization of the Crypto industry with the highest possible confidence level, achieving a tracking error lower than 0.25%. That is that on any given day it tracks the index with a confidence level north of 99.75%, including fees.
As a rules-based tracker, the Real TCMC Index Tracker serves as a tool for passive investors to participate in this asset class, and as an industry benchmark for investment managers and investors at large. The Real TCMC Index Tracker offers 5 main advantages :
4. coverage (of the entire crypto industry);
5. has the best risk-adjusted performance profile possible.
Not too surprisingly, the index is a better investment vehicle than Bitcoin itself, and a much safer approach than trying to pick single coins. Investing with the Tracker allows to profit from the unforecastable raise of some cryptocurrencies, while limiting the losses deriving from the fall of others.
With more than six years of historically back-tested data, the Tracker aims to serve as the most complete view of the crypto market for investors and academics alike.
Crypto Market Indices are a suite of benchmark indices designed to be the most comprehensive rules-based indices objectively measuring asset valuations in the cryptocurrency markets space.
The indices are calculated and administered by Crypto Market Quants, an index engineering firm in France that is fully compliant with IOSCO Principles for Financial Benchmarks.
They are useful tools for investors, benchmarks for traders and asset managers, replicable indices for passive funds and ETFs. In short, they are industry standards for cryptocurrencies.
CMI was created and is maintained by an independent team of quants, crypto-enthusiasts, techies and investors catering to their own needs. The project was and is sponsored by Crypto Market Quants to cover costs.
CMI indices are currently used as benchmarks for investment strategies. A free license is available to everyone.
Crypto Market Indices are free to use. Get your API key.
Why Indices ?
While you can calculate data for each cryptocurrency individually, having a large collection of numbers is bulky and inefficient for tracking general performance. Therefore, a single value is needed to easily compare and track changes in a group of cryptocurrencies selected for a specific characteristic, such as market capitalization or industry. An index is a structure designed to replicate changes in the prices of its constituent stocks over time.
- Rebalanced and reconstituted on selected index frequency
- Coverage of the entire sector and sub-sectors
- Robust indexing methodology administered by Crypto Market Quants
The Real TCMC Index Tracker is a digital asset index tracker designed to objectively track the performance of the entire blockchain sector. Through CMI’s API the tracker is available as a data stream. It can also be bought and sold directly in the form of a smart contract (token) on the blockchain. The Real TCMC Index Tracker token is an ERC-20 compatible smart contract that tokenizes the tracker’s holdings and provides real-time pricing and trading possibilities, using aggregate liquidity from the largest crypto exchanges in the world.
Token Selection Criteria
As part of the token inclusion assessment, CMI considers a wide range of characteristics :
- The coin or token must be available for trading on reputable exchanges* with sufficient liquidity
- The coin or token must not be considered a stablecoin
- None of the following will be included in the index:
- Wrapped tokens,
- Tokenized derivatives,
- Synthetic assets,
- Tokens that are tied to physical assets,
- Tokens that represent claims on other tokens.
- It must be possible to reasonably assess the token’s circulating supply
- The coin or token must have been launched and traded for at least 90 days before being able to qualify for index inclusion
The index value is the spot value of the Real TCMC and is calculated to reflect the price changes of all 10 underlying assets.
- Weight : tracks the the proprietary market capitalization metric of individual assets as a share of the total capitalization of the tracker
- Price : market price of the coin or token in USD as calculated by CMI across trading venues and as a reference source
Ongoing Index Maintenance
The index is maintained on a bi-weekly basis in two phases :
I. Determination Phase
The Determination Phase takes place the day prior to the reconstitution phase. It is the phase when the changes needed for the next reconstitution are determined.
- Proprietary market capitalization metrics for all candidate tokens
- Rank all candidate tokens by market capitalization and select the top 10
- Additions and deletions: The tokens being added and deleted from the index calculation are determined during this phase
- Weighting : the Real TCMC Index Tracker is an equal weight tracker. That is that all constituents must have the same weight at reconstitution
II. Reconstitution Phase
At the end of the Determination Phase, the index composition will change to the new constituents and weights. Components will be added or removed, and weights adjusted. To avoid front-running, the outcome is published after the reconstitution is effective.
The index is calculated and managed by Crypto Market Quants (CMQ), an independent data science provider based in France. CMQ develops, calculates and markets crypto indices across multiple asset classes and adheres to the IOSCO Financial Benchmarking Principles.