On-chain Data Previously Only for Institutions, Now Visible in the Upbit App!

▲ [Photo Material] Upbit Data Lab Logo

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 industry sources on the 7th, Dunamu, the operator of Upbit, launched two new on-chain strategic indices through Upbit Datalab: the 'Ethereum Small-Cap Underpriced Index' and the 'Ethereum Small-Cap Overpriced Index'. This is 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 development as it expands on-chain data, which was previously considered an area primarily for institutions and professional traders, to general investors.

The core of these indices is the MVRV (Market Value to Realized Value) indicator. 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 indices so that investors can understand it at a glance.

The 'Ethereum Small-Cap Underpriced Index' is composed of five representative small and medium-sized Ethereum ERC-20 based assets traded on Upbit's KRW market, where the 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, meme coins, and assets with investor protection issues were excluded from evaluation. The fact that these indices 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.

In particular, Upbit Datalab simulations showed that portfolios based on the underpriced index recorded more stable long-term performance than strategies tracking the overpriced index. In the industry, as domestic exchanges move beyond simple price provision competition to data analysis platform competition, there are also evaluations that Upbit has preempted a new area: 'on-chain popularization'.

Kim Dae-hyun, Chief Data Officer (CDO) at Dunamu, said, “On-chain data is open to everyone, but its high difficulty of use has led to significant information asymmetry.” He added, “Starting with these strategic indices, we plan to continuously expand related indices to enable general investors to easily utilize on-chain data.” The new indices can be checked in the Datalab 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.*