I am curious about the DeFi Index Perpetual Futures by FTX, how it works or what is/are the computations to get the index price?
Here you go with real chart, some notes, and Index Calculation Formula on FTX. It is obviously that the index is not a representative for all DeFi tokens.
Chart:
https://ftx.com/en/trade/DEFI-PERPDEFI-PERP tracks the price of a basket of Decentralized Finance coins, using a weighed average of the prices of KNC, MKR, ZRX, REN, REP, SNX, COMP, TOMO, RUNE, CRV, DOT, LINK, MTA, SOL, CREAM, BAND, SRM, SUSHI, SWRV, AVAX, YFI, UNI, WNXM, AAVE, BAL. Get exposure to 25 different coins with one future!
The Index Calculation Formula:
https://help.ftx.com/hc/en-us/articles/360027668812-Index-CalculationDEFI: The Decentralized Finance (DeFi) Index contains the following coins and quantities:
Ticker Quantity
KNC 67.673
MKR 0.306
ZRX 243.498
REN 292.601
REP 1.752
SNX 43.216
COMP 1.274
TOMO 25.564
RUNE 71.456
CRV 34.845
DOT 44.316
LINK 15.649
MTA 2.916
SOL 15.134
CREAM 0.154
BAND 7.826
SRM 16.844
SUSHI 34.072
SWRV 2.612
AVAX 8.057
YFI 0.01
UNI 62.448
WNXM 0.665
AAVE 3.664
BAL 2.821
All elements of each index are weighted equally. All elements are capped at 30bp divergence from the median.
I thought the total volume of Defi is the last chart, the total value locked in DeFi.
The total value (USD) locked in DeFi is one side of the story. The point I want to emphasize is the over-inflated, fake and bubble marketcap from DeFi tokens. Most of those tokens are copy-cats, and they have extremely high inflation. With a specific token, you can see its marketcap increases but it does not mean the token value is increase. The marketcap increase probably comes from token inflation and cover the lost in token value.
For me in Bitcoin Dominance, since last month I started to monitor closely it and I really expected it will visit again the 70% level, which it may correct again and fall or breakout with a massive pump again on Bitcoin.
With the over value from DeFi shit tokens, I still see a scenario for bitcoin to keep rising in domination to 70% (without the bubble from DeFi, I believe bitcoin will stop here and won't climb up to 70%).
3-day chart: What do you expect more amazing rise from bitcoin (of course with many more factors that are not discussed here) ?
Anyway, I am preparing for 2 scenarios but I have more allocations of portfolio for the pull back of bitcoin.