The NYALA Next 11 Index

The main purpose of NYALA’s Next 11 index is to track 11 crypto assets that are on the cusp of mainstream adoption; not just would-be Ethereum killers but protocols that could propel the value created by blockchain technology to the next level. The index is partially inspired by Jim O’Neill’s attempt to identify the next 11 superstar emerging economies (after the BRICs) in 2005.

The constituents of the Next 11 index are reviewed on a quarterly basis and as usual, the rebalancing for Q3 2022 resulted in some turnover in the assets tracked by the index. We want to quickly present the assets added and removed to readers and followers of the NYALA blog.

New N11 Constituents, as of Q3 2022

Flow – FLOW

Dapper Labs’ blockchain game, Cryptokitties, was the first so-called ‘killer app’ on Ethereum, generating so much activity and blockspace demand that it rendered the Ethereum network effectively unusable for extended periods of time. This experience drove Dapper Labs to create Flow, a blockchain with a focus on scalability and ease of developer and consumer onboarding. They claim that Flow can scale to serve billions of users without implementing complicated sharding techniques by splitting the role of a blockchain validator into four different roles: consensus, verification, execution, and data availability.

Flow first rose to awareness with the success of NBA Top Shots, an NFT project which allowed users to collect and trade highlight-reel video clips of NBA games and players. The hype around NBA Top Shots quickly died off and Flow has flown under the radar for the past year.

Luckily, Flow has a lot of money from fundraising to attract developers and very valuable intellectual property rights that can be leveraged to attract users. Furthermore, Flow is one of four blockchains that Meta’s Instagram will initially support as they integrate NFTs into their product (the other three are Ethereum, Polygon, and Solana). Finally, permissionless deployment of smart contracts has been enabled on Flow as of this week, opening the flood gates for many new dApps to be built on Flow soon [1].

FLOW is a gas token used to pay network transaction fees, a deposit token used to pay for storage on the network, and can be staked to secure the network.

Cosmos Hub – ATOM

The Cosmos ecosystem can be imagined as an “Internet of Blockchains”, a constellation of independent but interoperable blockchains that leverage the Cosmos SDK framework and use Tendermint as their consensus engine, with some exceptions. Blockchains in the Cosmos ecosystem increasingly communicate via the Inter-Blockchain Communication protocol (IBC), an interoperability protocol that ensures secure data and value transfer between the blockchains utilizing it.

Cosmos Hub can be thought of as a busy highway intersection, a central hub for IBC packet routing between blockchains within the Cosmos ecosystem. ATOM is the native token of Cosmos Hub, which can be staked to secure the network and vote in governance matters. As IBC moves towards a shared security model, similar to Polkadot’s relay chain approach, staking ATOM tokens would also contribute to the security of and collect fees from any IBC-connected blockchain in the Cosmos ecosystem.

THORchain – RUNE

THORChain is an independent blockchain built using the Cosmos SDK that functions as a cross-chain decentralized exchange (DEX) on which assets native to different blockchains can be traded against each other. For example, DOGE can be swapped for ETH using THORChain. A decentralized cross-chain DEX is a form of censorship resistance because it allows users to bypass centralized exchanges when they need to swap assets that are not native to the same blockchain.

THORChain’s cross-chain swaps are enabled by liquidity pools that pair each asset in the pools against RUNE, the native token of THORchain. With the support of arbitrageurs and cross-chain bridges, the correct exchange rate between all assets is maintained with the RUNE token as a sort of hidden intermediary. RUNE can also be staked to secure the THORChain network and vote in governance measures.

N11 Constituents Removed, as of Q3 2022

Please note that the removal of an asset from the N11 index should not be perceived as a negative judgement against it, unless otherwise stated. NAM follows a rules-based process to select new index constituents during each quarterly rebalancing, which leads to ongoing turnover of existing constituents.

Polygon – MATIC

A platform aimed at being a sort of swiss army knife for Ethereum scaling, integrating support for all possible scaling solutions instead of focusing on one or a few. This token has been promoted to the core index.

Kusama – KSM

Kusama is a canary network, a production network with real value on it that is used to test the impact of software upgrades and other changes before rolling them out on the economically consequent Polkadot blockchain with which it shares it codebase.

Theta Network – THETA

Theta Network is a decentralized media streaming network which uses token incentives to crowdsource excess computational, storage, and network bandwidth resources that are used to provide high quality streaming video at low cost.


You can find the indices here

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