Altcoins Take Center Stage as NEAR Leads Index Rally

NEAR Protocol (NEAR) rose 6.7% in recent trading sessions, outperforming most components of the CoinDesk 20 Index and contributing to an overall 1.8% gain for the index. The index, which tracks 20 major digital assets, is currently trading at 4093.61, having increased by 71.58 points since 4 p.m. ET on Friday. The performance of NEAR Protocol marked one of the strongest upward moves in the index, highlighting a renewed interest in smaller-cap altcoins amid broader market optimism [2].

Sixteen of the 20 assets included in the index are trading higher, with Polkadot (DOT) and Solana (SOL) also showing strong gains of 5.2% and 4.5%, respectively. These movements suggest a broad-based rally across the cryptocurrency market, driven by factors including increased institutional adoption and favorable macroeconomic developments. However, not all assets fared well, with Bitcoin Cash (BCH) and Polygon (POL) recording declines of 3.0% and 1.4%, respectively, indicating some degree of differentiation in market sentiment [2].

The CoinDesk 20 is a market-capitalization-weighted index designed to offer a diversified representation of the digital asset market. It features a 30% cap on the largest member—currently Bitcoin—and a 20% cap on all other members to prevent any single asset from dominating the index's performance. This structure ensures that the index remains balanced and reflective of broader market trends rather than being overly influenced by the performance of a single asset [3].

The index is updated every five seconds and undergoes quarterly reconstitution and rebalancing under a transparent governance framework. This frequent recalibration helps maintain the index's relevance in a rapidly evolving market and ensures that it accurately captures the performance of the most liquid and actively traded digital assets. The CoinDesk 20 is part of the larger CoinDesk Market Index (CMI), which itself is drawn from the Digital Asset Classification Standard (DACS) universe [3].

The performance of NEAR Protocol and other altcoins such as DOT and SOL indicates a potential shift in investor preferences, with traders increasingly favoring projects that offer innovative use cases and scalability solutions. NEAR Protocol, for example, has been gaining traction for its focus on user-friendly design and energy-efficient consensus mechanisms. While Bitcoin remains the dominant asset within the index, the recent outperformance of altcoins suggests a broader diversification in investor strategies [2].

The index's performance is closely watched by institutional and retail investors alike as a barometer for the overall health of the cryptocurrency market. With continued volatility and a dynamic regulatory landscape, the CoinDesk 20 serves as an important tool for benchmarking and portfolio management in digital assets. The inclusion of smaller-cap altcoins like NEAR Protocol in the index also reflects the growing maturity and diversification of the market [2].

Source:

[1] NEAR Definition & Meaning (https://www.merriam-webster.com/dictionary/near)

[2] Polkadot (DOT) Rose 5.2%, Leading Index Higher (https://www.coindesk.com/coindesk-indices/2025/09/08/coindesk-20-performance-update-polkadot-dot-rose-5-2-leading-index-higher)

[3] CoinDesk 20 (https://www.coindesk.com/tag/coindesk-20)