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What is DeFi Pulse Index (DPI)?

DeFi Pulse Index basic info

Name:DeFi Pulse Index
Ticker:
Introduction:

What Is DeFi Pulse Index?

DeFi Pulse Index is a capitalization-weighted index that tracks the performance of some of the largest protocols in the decentralized finance (DeFi) space. Launched in September 2020, it represents a significant innovation in the crypto market, offering a streamlined way for investors to gain exposure to a diversified portfolio of DeFi assets. The index is built on Set Protocol’s V2 infrastructure and initially included the 10 most popular DeFi tokens available on Ethereum. It's a financial product designed to lower the barrier to entry for new users in DeFi and provide experienced users with exposure to DeFi through a single asset.

The DeFi Pulse Index allows investors to own the actual tokens that comprise the index. This approach aligns with the ethos of DeFi, emphasizing transparency and direct ownership. The index is managed by DeFi Pulse, a leading analytics and ranking site for DeFi projects, which ensures that the index reflects the most reputable and significant projects in the DeFi space. The inclusion criteria for the index are stringent, focusing on market capitalization, security, decentralization standards, and the legitimacy of the projects and their associated tokens.

Resources

Official Website: https://indexcoop.com/products/defi-pulse-index

How Does DeFi Pulse Index Work?

The DeFi Pulse Index operates by employing a capitalization-weighted strategy. This means that the weight of each token in the index is proportional to its market capitalization. The larger the market cap of a DeFi token, the greater its influence on the index's performance. This method ensures that the index accurately reflects the market dynamics of the DeFi sector. The index is rebalanced on a quarterly basis to maintain accurate representation, adjusting the weightings of the tokens and potentially adding or removing tokens based on their performance and relevance in the market.

The index's construction and maintenance are overseen by the Index Cooperative, a decentralized autonomous organization (DAO) comprising DeFi experts, developers, and marketers. This collaborative approach ensures that the index remains up-to-date with the rapidly evolving DeFi landscape. The tokens included in the DeFi Pulse Index are selected based on a set of criteria, including market cap, project maturity, circulating supply, and adherence to security and decentralization standards. These criteria ensure that the index only includes reputable and significant DeFi projects, providing investors with a reliable and diversified exposure to the DeFi market.

Investors can purchase the DeFi Pulse Index token (DPI) on various centralized and decentralized exchanges. DPI represents an investment in the index and fluctuates in value based on the collective performance of the underlying DeFi tokens. This makes DPI an attractive option for investors looking to gain exposure to the DeFi sector without the need to manage a portfolio of individual tokens. Additionally, DPI can be used as collateral on various lending platforms and yield farming protocols, adding to its utility in the DeFi ecosystem.

What Is DPI Token?

The DPI token is the digital asset that represents an investor's share in the DeFi Pulse Index. It is an Ethereum-based ERC-20 token that encapsulates the value of the index's underlying DeFi tokens. By purchasing DPI, investors gain exposure to a basket of the top DeFi tokens, allowing for diversified investment in the DeFi space with a single transaction. This approach is cost-effective and convenient, especially for those who are new to DeFi or prefer a more hands-off investment strategy.

DPI is designed to offer a simplified and efficient way to invest in DeFi. It eliminates the need for investors to buy and manage multiple DeFi tokens individually, saving on transaction costs and the complexities of portfolio management. The token is rebalanced regularly to ensure that it accurately reflects the current state of the DeFi market, adjusting its composition to include the most relevant and successful DeFi projects. DPI's utility extends beyond simple investment; it can be staked or used as collateral in various DeFi protocols, providing additional opportunities for yield generation and participation in the DeFi ecosystem.

What Determines DeFi Pulse Index’s Price?

The price of the DeFi Pulse Index (DPI) is primarily determined by the market capitalization of its constituent DeFi tokens, reflecting the real-time value and performance of the decentralized finance sector. As a capitalization-weighted index, DPI's value fluctuates based on the individual market caps of the included DeFi projects, which are some of the most prominent and influential in the Ethereum blockchain ecosystem. This method ensures that the index accurately mirrors the dynamics and trends within the DeFi market, making it a reliable barometer for the sector's overall health and growth. The larger the market cap of a specific DeFi token within the index, the more significant its impact on the DPI's overall price. This weighting mechanism aligns DPI's performance with the most successful and dominant projects in the DeFi space, offering investors a comprehensive and up-to-date snapshot of the market.

Additionally, the DeFi Pulse Index's price is influenced by the broader cryptocurrency market trends and investor sentiment. Factors such as regulatory changes, technological advancements, and shifts in investor confidence in the crypto space can significantly impact the value of DeFi tokens and, consequently, the DPI. Regular rebalancing of the index, conducted quarterly, also plays a crucial role in determining its price. This rebalancing process adjusts the weightings of the tokens in the index and can add or remove tokens based on their performance, market relevance, and adherence to the stringent criteria set by DeFi Pulse. This ensures that the DPI remains a relevant and accurate representation of the DeFi market, making it a valuable tool for investors seeking exposure to this innovative and rapidly evolving sector of the cryptocurrency ecosystem.

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Current price:
All-time high:$750.63
All-time low:$51.9

DPI supply and tokenomics

Circulating supply:558,983.44 DPI
Total supply:558,983.43 DPI
Max supply:0 DPI
Market cap:$63.87M
Fully diluted market cap:$63.87M

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What is the development prospect and future value of DPI?

The market value of DPI currently stands at $63.87M, and its market ranking is #588. The value of DPI is not widely recognized by the market. When the bull market comes, the market value of DPI may have great growth potential.

As a new type of currency with innovative technology and unique use cases, DPI has broad market potential and significant room for development. The distinctiveness and appeal of DPI may attract the interest of specific groups, thereby driving up its market value.

What will the price of DPI be in 2025?
Based on DPI's historical price performance prediction model, the price of DPI is projected to reach $117.84 in 2025.
What will the price of DPI be in 2030?
In 2030, the DPI price is expected to change by -2.00%. By the end of 2030, the DPI price is projected to reach $138.6, with a cumulative ROI of +41.04%.
Reminder: Just like all cryptocurrency investments, investors must closely monitor the market performance of DPI and be aware of the associated risks. The world of cryptocurrencies is full of uncertainties, so thorough research and preparation are essential.

Is DPI worth investing or holding? How to buy DPI from a crypto exchange?

If you want to buy DPI, the following information may be helpful for your investment decisions:
In the last seven days, the price of DPI has risen by 14.05%, leading to positive returns for most DPI investors. The market is currently optimistic about the price trend of DPI.
It is important to note that the current price of DPI has retreated by -84.78% from its all-time high. This coin is currently considered high-risk, and while its price may rebound in the future, there is significant uncertainty.
Additionally, it's important to understand that each coin has its own optimal times for buying and selling. The optimal time to invest is dynamic: when a coin is undervalued, it's wise to adopt a buying strategy; when it becomes overvalued, you should decisively sell the coin.
To decide whether DPI is worth investing in, you need to consider various market factors such as the overall trend of the cryptocurrency market, the project's fundamentals, its current market valuation, and whether the current price is suitable for buying. If the project's fundamentals suddenly change or the price becomes excessively high, you should adjust your investment strategy and trading operations accordingly.
Your investment decisions should be based on your own risk tolerance, financial status, market analysis and research, especially the timing of your investments. Correct timing can ensure more reliable returns. Keep in mind that investing in DPI or any cryptocurrency comes with certain risks and uncertainties.
Regardless of your outlook on the development prospects and future trends of DPI, if you want to buy or sell DPI, you can consider Bitget for your trading needs. The best place to buy DPI is an exchange that offers hassle-free and secure transactions, combined with a user-friendly interface and high liquidity. Every day, millions of users choose Bitget as their trusted platform for crypto purchases.
Investing in DeFi Pulse Index has never been easier. Simply sign up on Bitget, complete the identity verification process, and make payments using bank transfers, debit cards, or credit cards, all while ensuring security through crypto wallets. This is a widely adopted method to buy DeFi Pulse Index. Here's a step-by-step guide on how to buy DeFi Pulse Index on Bitget.

How to get DeFi Pulse Index through other methods?

Using cash to buy DeFi Pulse Index is not the only way to obtain DeFi Pulse Index. If you have the time to spare, you can get DeFi Pulse Index for free.
Learn how to earn DeFi Pulse Index for free through the Learn2Earn promotion.
Earn free DeFi Pulse Index by inviting friends to join Bitget's Assist2Earn promotion.
Receive free DeFi Pulse Index airdrops by joining ongoing challenges and promotions.
All crypto airdrops and rewards can be converted to DeFi Pulse Index through Bitget Convert, Bitget Swap, or spot trading.

What is DeFi Pulse Index used for and how to use DeFi Pulse Index?

The use case of DeFi Pulse Index may expand as the crypto market and the project itself develop. Currently, you can use DPI to achieve the following goals:
Arbitrage by trading DPI: Since DPI is a frequently traded cryptocurrency, the price of DPI is always fluctuating. Earn more DPI by buying low and selling high on the exchange. Bitget spot market provides a variety of DPI trading pairs to fully meet your needs.
Earn by staking DPI: You can also generate income through financial management methods such as staking DPI or lending DPI. Bitget Earn offers a variety of financial products designed to help you earn more income from your DPI.
Send or pay DPI: If you want to give DPI to your friends, a charity, or a fundraiser, or you want to pay someone with DPI, you can quickly and easily send DPI to the recipient through their payment address.
You can also go to the official website of the DeFi Pulse Index project to learn more about the use cases of DPI. For example, find out if the project supports the use of within its community or ecology, or if the project allows you to purchase physical or virtual products in .

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DPI resources

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DPI price calculator

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DPI
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1 DPI = 115.13 USD
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