Index Token

Index tokens are created with the purpose of mirroring the performance of a particular set of cryptocurrencies or other assets, similar to the role of indexes in traditional stock markets. They are commonly utilized to monitor the market capitalization of various decentralized finance (DeFi) projects or multiple Layer-1 smart contract blockchain platforms. Moreover, synthetic index tokens based on cryptocurrencies can be employed to track stock indexes such as the S&P 500 or NASDAQ.