On-chain data once exclusive to institutions, now available in the Upbit app!

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Upbit is once again shaking up the domestic digital asset data market by introducing strategic indices that allow general investors to intuitively utilize on-chain data.

According to the industry on the 7th, Dunamu, the operator of Upbit, has launched two new on-chain strategic indices through Upbit Data Lab: the 'Ethereum Small-Cap Underpriced Index' and the 'Ethereum Small-Cap Overpriced Index'. This marks the first time that actual on-chain data has been used as a criterion for selecting assets among domestic digital asset indices. Market attention is focused on this as it expands on-chain data, which was previously considered an area primarily for institutional and professional traders, to the realm of general investors.

The core of these indices is the MVRV (Market Value to Realized Value) metric. MVRV is a representative on-chain indicator that compares the current market price with the average purchase price of investors on-chain to show whether an asset is overbought or undervalued. Upbit has simplified this complex data into strategic index forms so that investors can understand it at a glance.

The 'Ethereum Small-Cap Underpriced Index' is composed of five representative small to medium-sized ERC-20 based Ethereum assets traded on the Upbit KRW market, whose market price is lower than the average purchase price of on-chain wallets. Conversely, the 'Ethereum Small-Cap Overpriced Index' tracks short-term overheating trends by incorporating five assets whose current price is higher than the average purchase price of on-chain participants, with equal weighting.

Upbit has also focused on securing investor trust and strategic stability. Both indices undergo regular rebalancing on the 2nd of every month, and the assets included and excluded are also disclosed. Furthermore, stablecoins, memecoins, and assets with investor protection issues were excluded from the evaluation. The fact that they reflect actual on-chain based fund flows and average purchase prices, rather than simply competing on price increase rates, is cited as a differentiating factor from existing cryptocurrency indices.

Notably, Upbit Data Lab simulations showed that portfolios based on the underpriced index recorded more stable long-term performance than strategies tracking the overpriced index. In the industry, it is also being evaluated that Upbit has preempted a new area, 'on-chain popularization,' as domestic exchanges move beyond simple price provision competition to data analysis platform competition.

Kim Dae-hyun, Dunamu's Chief Data Officer (CDO), stated, “On-chain data is open to everyone, but its high difficulty of utilization has led to significant information asymmetry.” He added, “Starting with these strategic indices, we plan to continuously expand related indices so that general investors can easily utilize on-chain data.” The new indices can be found in the Data Lab menu within the Upbit app.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*