How does the USDT trading volume anomaly affect the index review?

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USDT Trading Volume Anomaly's Impact on Index Review

The abnormal USDT trading volume recorded on CoinGecko between April 1st and April 9th, which was approximately 81,164 times higher than the average volume for the remainder of the second quarter, necessitated its exclusion from specific calculations to ensure a more accurate representation of stablecoin trading volumes within the ixCrypto Index review. This exclusion is a standard procedure to mitigate the impact of data anomalies on index composition and performance metrics.
Exclusion of Anomalous Data

During the review period for the ixCrypto Index, a significant spike in USDT trading volume was observed on CoinGecko. This anomaly, occurring between April 1st and April 9th, was so substantial that it represented approximately 81,164 times the average trading volume for the rest of the second quarter. To maintain the integrity and representativeness of the index, this anomalous data was excluded from the calculations. This practice ensures that the index reflects typical market conditions rather than being skewed by temporary, statistically improbable events.
Maintaining Index Accuracy

The exclusion of the USDT volume anomaly is crucial for accurately assessing the trading activity of stablecoins and their contribution to the overall crypto market. By removing such outliers, the index review process can provide a more reliable picture of market dynamics. For instance, the combined average trading volume of stablecoins within the top 19 rankings was approximately 1.88 to 2.01 times the aggregate volume of the ixCI constituents, a figure that would be distorted without addressing the USDT anomaly.
Implications for Stablecoin Coverage

While the article does not detail specific downstream impacts on other index metrics due to the exclusion, it notes that stablecoins constitute 11.95% of the total crypto universe. The ixCrypto Stablecoin Index itself maintained its five constituents, covering around 97.42% of the 90-day average market capitalization within the stablecoin universe. The adjustment for the USDT anomaly ensures that the stablecoin segment's representation within broader index calculations, like the ixCI, is based on more normalized trading data.

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How does the USDT trading volume anomaly affect the index review?

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