Four ways to invest diversely in the Ethereum ecosystem

Ethereum indices allow everyone to invest diversified in the Ethereum ecosystem without much prior knowledge. So today we’re taking a look at four of the most promising indices.

Indices that use the Ethereum Blockchain are a new phenomenon: Many only came onto the market a few months ago. Compared to traditional investments in indices, the market on Ethereum is still microscopic. According to Statista Between 2005 and 2019 alone, global ETF and ETP assets rose from just under 417 billion to over 6,000 billion US dollars. Ethereum indices, however, currently have a market capitalization of several hundred million US dollars. Nevertheless, they already offer a good opportunity to invest diversified in various sectors of the Ethereum ecosystem.

1. DeFi Pulse Index (DPI)

The most famous index of the entire Ethereum space is the DeFi Pulse Index (DPI) of Token sets. DPI was developed to track the performance of tokens within Decentralized Finance (DeFi) on Ethereum. DPI should therefore be a kind of ETF for the DeFi space.

In addition, the index is weighted according to the market capitalization of the respective DeFi token and each token within the DeFi Pulse Index is covered 1: 1. Currently, (UNI), Aave (AAVE), Synthetix (SNX), Compound (COMP) and SushiSwap (SUSHI) are among the largest assets in the index. In addition, DPI is currently on Token sets or the decentralized Ethereum exchanges UniSwap and SushiSwap available.

The decentralized organization (DAO) Index Coop (INDEX) actively manages DPI and constantly tries to ensure that DPI continues to map all leading Ethereum DeFi tokens. In addition, INDEX holders have the right to vote in governance decisions that affect tokens within the DeFi Pulse Index. In the future, INDEX holders will also be rewarded for managing various indices. This is why Index Coop is also known as the black rock of the crypto space.

The Metaverse Index is another Ethereum token index jointly designed by Index Coop and Tokensets. In contrast to DPI, this index focuses on mapping tokens that deal with metaverse.

Metaverses are shared virtual spaces that come very close to the real world in many aspects. By using blockchain technology, objects, properties, identities and much more can be created as non-fungible tokens (NFT) in digital worlds. For example, it is possible for users to own a property in the Metaverse of Decentraland (MANA). The right of ownership is written on the Ethereum blockchain. Some of these properties already cost several $ 100,000.

MVI consists of 15 different tokens that are designed to capture the trend of relocating entertainment, sports and business to a virtual environment.

Just like DPI, MVI is on Token sets or the decentralized Ethereum exchanges UniSwap and SushiSwap available.

3. B20 (B20)

One of the current superstars in the field of digital works of art is the American graphic designer Mike Winkelmann, better known as Beeple. In 2020, he sold an art collection of 20 works of art on the Ethereum Blockchain for a total of $ 2.2 million to Metapurse.

The team at Metapurse then decided to exhibit the digital collectibles in various virtual museums. Since then, art enthusiasts around the world have been able to view the NFT artworks in the metaverses of Cryptovoxels, Decentraland and Somnium Space. In addition, Metapurse set the three museums and the twenty Beeple works of art in a smart contract on the Ethereum blockchain and then published the B20 token.

The B20 token is one of the most interesting tokens in the crypto space. It enables investors to invest proportionally in Beeple’s art collection, similar to stocks. Investors acquire a portion of the smart contract in which the Beeple artworks are locked when they invest in the B20 token. At the time of going to press, B20 is at $ 5.11. Overall, the Beeple collection has an equivalent value of $ 26 million. You can buy the B20 token UniSwap.

4. Whale (WHALE)

Whale is a so-called social token (SD) that uses the Ethereum blockchain. An SD is a token that is published by a community or a single person. This makes it possible, for example, for people or communities to tokenize themselves and monetize services via smart contracts. If you want to know more about social tokens, you should take a closer look at this article from BTC-Echo.

The social token WHALE was launched by WhaleShark, an NFT investor well known on Twitter and in the crypto space. Among other things, WhaleShark has already talked to Paris Hilton, who has blossomed into a true NFT expert, and other celebrities about NFT: