S&P's Blockchain Revenue Index Aims to Shift Focus from Market Cap

S&P Dow Jones Indices and Pantera Capital have launched a new digital asset index that evaluates blockchain networks based on protocol revenue, rather than token prices or market capitalization. This move signals a shift towards 'productive activity' metrics, as institutional players look for benchmarks that better reflect real-world usage.

The index is designed for institutional allocation and can be used as the basis for investment products or as a reference portfolio for actively managed strategies. It aims to help investors distinguish established on-chain business activity from more speculative exposure.

Protocol revenue is central to the index's methodology, with networks selected and ranked based on aggregate protocol revenue over the prior two quarters. Eligibility requires minimum thresholds for protocol revenue, market capitalization, and liquidity.