In October 2022, the Binance cryptocurrency exchange is launching a specialized cryptocurrency index of the top 10 cryptocurrencies, similar to the Nasdag Composite, Dow Jones Industrial Average (DJIA) and S&P 500. With the help of which the general state of the economy, entire industries or the entire country is assessed. These indices are followed by millions of people ranging from the government, banks, fund managers, traders and ordinary housewives. And, for sure, you, too, have already heard more than once about various indices on stock exchanges around the world. The Binance CMC Top 10 Index sets itself a similar goal of tracking the state of the entire cryptocurrency industry, rather than a single Bitcoin or Ethereum cryptocurrency. And the seriousness of the approach in compiling this ranking tells us that Binance is serious about creating a globally recognized crypto index that will be followed by no less than the S&P 500 or the DJIA.
The Binance CoinMarketCap TOP 10 Index is not just tracking the top 10 cryptocurrencies by capitalization, but a whole separate organization with its own committee and methodology for calculating the index, depending on the current state of the crypto market. The TOP 10 includes, as the name implies, the best 10 cryptocurrencies by capitalization and this list will be reviewed monthly. The index itself is recalculated in real time and, importantly, all cryptocurrencies have an equal weight in compiling the index, i.e. regardless of the share of each cryptocurrency in the market, they affect the index in the same way.
The Binance SMS TOP index started on October 10 - 14, 2022 from a mark of 1000 USD. Starting from this moment, you can easily monitor the state of the entire crypto market using this index, and a value greater than or less than 1000 will mean that the market has fallen or risen relative to October 14, 2022.
At the start, the Binance CMC TOP 10 index included the following cryptocurrencies: Bitcoin, Ethereum, Binance coin, Ripple, Cardano, Solana, Polygon, Polkadot, Tron and Avalanche
As you know, stock indices are not only numerical indicators, but also a full-fledged financial instrument on the basis of which various financial and pension funds operate, secondary financial instruments are created for investors.
Similarly, the CMC TOP 10 Index will have similar functionality in the future. And the first tool that will use this index is Auto Invest on the Binance exchange. In other words, a person who does not understand cryptocurrencies can invest in the crypto-currency industry simply by buying secondary financial instruments based on the Binance CMC TOP 10 index, similar to how it is done now in the stock market, when investors invest in a separate industry: electronics, medicine, oil, metallurgy and other.
Auto-investing in Index Binance CMC TOP 10 is expected to start working in November 2022. This option will be available in the Binance Earn - Auto Invest section, where, in addition to various cryptocurrencies, it will be possible to invest in a newly created cryptocurrency index.
Invest in Index Binance CMC TOP 10
(since November 2022)
Conclusion: Given that the Binance exchange is the undisputed leader in the crypto market, therefore, the created Coinmarketcap TOP 10 index has every chance of becoming a kind of standard in the industry, which will be monitored not only by financial tycoons, but also by ordinary citizens who will have a choice where to invest their savings: electronic industry, medicine, oil sector or crypto industry.
