Cryptocurrencies have gained increasing attention and momentum in prices during the last months. To measure cryptocurrency market movements as a whole, we propose the Lykke Crypto Index 20 (LCI20) to be a weighted average of the 20 largest cryptocur- rencies’ market capitalization. The purpose of our index is to closely follow the value of cryptocurrencies both to reflect short-term movements and long-term trends. We address cryptocurrency-specific challenges as there are, for example, the distinct market behavior around currency splits and suggest to track index evolution in real time.
This technical report won the first prize in the following competition: https://streams.lykke.com/Project/ProjectDetails/join-lykke-in-launching-a-crypto-index