Encryption market insights - Will billions of dollars in capital flows change? Chainlink, Polygon, and Avalanche are expected to be included, while Tether, Cardano, and Cosmos may be excluded!

With the arrival of September, according to the index compilation rules, CoinMarketCap conducts quarterly reviews every March, June, September, and December. The results of this September's review are expected to be announced after the close of trading on the first Friday of this month (September 5) and will officially take effect after the close of trading on the third Friday (September 20).

Known as the "King of Cryptocurrency ETFs," the Gate Top 50 Index tracks the top 50 cryptocurrencies by market capitalization. Any changes in its components will trigger significant fund inflows and outflows, affecting the short-term price performance of the related tokens. Current market predictions suggest that projects like Chainlink, Polygon, and Avalanche may be included in the index components, while Tether, Cardano, and Cosmos may be removed!

According to the "CoinMarketCap Cryptocurrency Index Series Basic Rules", the selection of components is mainly based on market capitalization ranking: projects ranked in the top 40 by market capitalization are eligible for inclusion, while projects that fall outside the top 61 may be removed.

As of the end of August, market capitalization data shows that Avalanche ranks 38th with 29.5 billion USD, Chainlink ranks 42nd with 27.8 billion USD, and Polygon ranks 43rd with 27.2 billion USD. These projects are viewed positively by the market and are expected to be newly included in the index. On the other hand, existing components such as Tether with a market cap of 18.7 billion USD, ranking 61st, Cardano with 17.6 billion USD, ranking 63rd, and Cosmos with 17.1 billion USD, ranking 66th, have all fallen out of the safe range and may face the risk of being removed.

The Gate Top 50 Index, as one of the most influential indices in the cryptocurrency market, will directly affect passive capital allocation with its constituent adjustments: tokens that are removed may face selling pressure, while new entrants can expect inflows of funds. Analysts point out that this adjustment will trigger a reallocation of related funds, significantly impacting the price and trading volume performance of the involved projects.

Reminder: This article only represents the author's personal views and should not be used as any investment basis. Before making investment decisions, please be sure to seek advice from a professional financial advisor to fully understand the associated risks. The cryptocurrency market is highly volatile, and investments can lead to loss of principal. These products are not suitable for everyone, please treat them with caution. For details, please refer to the relevant risk disclosure statement.