S&P launches blockchain index to rank digital assets by revenue generated

S&P Dow Jones Indices and Pantera Capital launched the S&P Blockchain Fundamentals Index on Saturday, 25 July, introducing a financial benchmark that ranks digital assets based on their actual protocol revenue. Moving away from traditional market-capitalization weighting, the new index utilizes on-chain data to measure the economic activity occurring within specific blockchain networks. Revenue-based weighting system The index is designed to track the performance of Layer 1 and Layer 2 protocols that generate fees through network usage. According to the launch data, the methodology focuses on "protocol revenue," which represents the total fees paid by users to utilize the blockchain's computing power or storage. This approach aims to distinguish between speculative price movements and the internal utility of decentralized platforms. Pantera Capital, one of the oldest digital asset investment firms, collaborated on the rules-based framework to ensure the data accurately reflects active network demand. By prioritizing revenue over market cap, the index provides institutional investors with a metric similar to price-to-earnings ratios used in traditional equity markets. The launch comes as institutional demand for transparent, data-driven crypto benchmarks reaches record levels in financial hubs like Dubai and New York. Institutional shift toward fundamentals The timing of the release on Saturday, 25 July, follows a period of increased regulatory scrutiny regarding the…