INDEX price prediction: Can diversified index fund deliver?

INDEX saw a late-March bump, but a bear position continues for the governance token

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What is Index Cooperative (INDEX)?

Index Cooperative is a crypto investment platform offering a total of 11 funds to choose from. The platform’s financial instruments operate in a similar fashion to index funds, comprising a diversified pool of underlying coins, tokens and non-fungible tokens (NFTs).

Index Coop has lofty ambitions to become the “BlackRock of DeFi”. It may have some way to go yet, what with Index Coop’s $56.85m in assets under management (AUM) compared with BlackRock’s $10trn AUM.

Index Coop’s native cryptocurrency INDEX is an ERC20 token used for protocol governance. Token holders can vote on and propose financial product launches, treasury allocations, compensation schemes and other maintenance ideas.

Below, we check out the fundamentals of the INDEX token before assessing the Index Cooperative price prediction. What is Index Cooperative and should you invest? Read on to find out!

INDEX token: Key figures

INDEX was changing hands at $3.61 as of 22 June 10:25 BST (UTC +1). According to Index Coop’s statistics, INDEX has a circulating volume of 4,467,968 and market capitalisation of $15.97m. A 24-hour trading volume of $630,000 was slightly under 4% of market cap. INDEX’s maximum supply is capped at 10 million units. 

You can buy INDEX on the Coinbase and Gemini centralised exchanges, although the Uniswap decentralised exchange is also a popular trading platform for INDEX.

When the token was first distributed in October 2020, 30% of allocation was scooped up by DeFi Pulse and Set Protocol, two of the inaugural asset managers of Index Cooperative. The community treasury holds 52.5% of supply, vested over three years, while 7.5% was reserved as incentives for index methodologists (strategists who help to devise index strategies). In addition, 9% of supply was reserved for a limited liquidity mining programme while the last 1% was airdropped to community members.

INDEX’s prolonged bear trend throughout 2022 was briefly interrupted in late Match, when it jumped from a closing price of $4.85 to a daily high of $17.79 between 17 March and 31 March. The 266% upswing met a reversal shortly thereafter. By 28 May, the token had fallen back to $3.98. The current exchange price is 97.32% below the all-time high of $133.14 observed on 16 November 2021.

Index Cooperative example: DeFi Pulse Index (DPI)

DeFi Pulse Index (DPI) is a capitalisation-weighted index that tracks the performance of DeFi  assets across the market.

List of underlying tokens comprising the DPI fund
DPI fund comprises 14 underlying DeFi tokens – Source: indexcoop.com

The basket of tokens includes Uniswap, Aave, SushiSwap and Synthetix. Each of DPI’s 402,887 shares are $75.14 a piece, giving a market capitalisation of $30.28m. At the time of writing, the fund was down 28.82% month on month, although weekly gains of 26.10% were posted.

According to its objectives: “The DeFi Pulse Index aims to track projects in decentralized finance that have significant usage and show a commitment to ongoing maintenance and development.”

Graph of DPI fund’s value over the past month
Though down month on month, DPI fund gained traction in mid-to-late June – Source: indexcoop.com

DPI charges a 0.95% streaming fee. Other Ethereum-compatible DeFi tokens can be added to the fund via community proposals.

INDEX price prediction

PricePrediction offers a price prediction for 2022 of $6.07, followed by a 2025 target of $17.93. Looking further down the line, the Index Cooperative price prediction for 2030 is $117.20.

The 2022 INDEX price prediction at DigitalCoinPrice is $4.70, followed by an INDEX price prediction for 2025 target of $7.12. The INDEX coin price target for 2030 is $16.35. The forecaster currently has a bear sentiment for INDEX. Of the 26 technical indicators used, 13 point to a sell strategy and five to a buy strategy, while eight remain neutral.

CoinArbitrageBot has some optimistic targets for INDEX coin, including a 2022 target of $15.10 and a 2025 target of $70.35.

The average Index Cooperative price prediction among the digital forecasters suggests potential investor returns of 138% by the end of 2022, heading upwards of 780% in 2025. The average price prediction for 2030 suggests potential investor returns of 1,749%.

Readers should take note that the price predictions given above are sourced from forecast websites that use automated algorithms and are only speculative. No information contained in this article is intended as financial advice. You should always do you own research before investing.

FAQs

Index Cooperative’s financial products operate in a similar fashion to index funds, comprising a diversified pool of underlying coins, tokens and NFTs. There are a total of 11 funds to choose from.

The utmost INDEX price price is given by PricePrediction. The digital forecaster’s 2030 projection is $117.20. Achieving this target could generate over 35 times returns. Keep in mind that this prediction is speculative. INDEX could also fall in value. Never invest money that you cannot afford to lose.

Index Coop token has a circulating volume of 4,467,968 out of a maximum supply cap of 10 million tokens.

You should make your own mind up following a deep analysis of the project and after receiving independent financial advice. If you do make an investment, make sure to never part with more money than you can afford to lose.

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
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