- RUNE has become the first token to graduate from the DEGEN Index
- RUNE crossed $2 billion in market cap recently, which is the ceiling for tokens in the index
- RGT will replace RUNE in the DEGEN Index, which has a $140 million market cap
RUNE has become the first token to graduate from the DEGEN Index, with creator @Redphonecrypto already naming the replacement as Rari Capital’s governance token RGT. As per the rules of the DEGEN Index, only coins under a $2 billion market cap can be included, and with RUNE passing this threshold this week it was time for it to make way for a smaller replacement.
Out With RUNE, in With RGT
When the DEGEN 10 Index was announced back in February, it was made clear that the idea was to pick low cap coins that had big potential. When any coin passed $2 billion in market cap it would graduate from the list and be replaced by another. Having put on a 100% spurt since the DEGEN coin went live on Indexed Finance on March 3, RUNE’s market cap crossed $2 billion some days ago, and as such the time had come to replace it.
It’s now worth $2b+
Per the plan, that means it’s time for the community to replace it with a smaller, more DEGENerate play
— redphonecrypto (@redphonecrypto) April 12, 2021
Redphonecrypto announced yesterday that RUNE’s replacement will be Rari Capital, a yield aggregator and open interest rate protocol with the ticker RGT. RGT has a market cap of $144 million, some 10x less than RUNE was when it launched on the DEGEN 10 Index. This should mean that it spends a lot longer in the DEGEN Index than the month that RUNE did. The progress of coins like RUNE has helped the DEGEN token put on about 33% since its launch five weeks ago, which represents a decent return for an index coin.
DEGEN Index Mechanics Questioned
While much of the reaction to the news was excitement that a new project was coming on board, one commenter raised a good point – how the removal of a $2.8 billion market cap token would impact the native value of the DEGEN Index, especially if it is being replaced with one with 10x less dollar value. With no reply forthcoming, only time will tell as to how the impact will be felt.