Digital Compass: In a nascent world of blockchain protocols, discerning value is a maze-like quest. Market liquidity can be a critical compass in guiding this exploration. Promising projects must confront market liquidity in evaluating a token’s feasibility. Our latest quarterly Coinbase Index reconstitution, the first as Coinbase Asset Management, bore witness to this scrutiny. Liquidity criteria removed Polkadot and Cosmos. The dynamic index exercise brings two realizations. First, Bitcoin and Ethereum have ascended to a staggering 95.51% of the Coinbase Core Index. It signifies an unmistakable trend towards secure digital harbors in a sea of uncertainty. Other assets must find their orbit around these two stars. As demonstrated in past cycles, the swelling dominance of these two titans signals our distance away from a typical bull market. Second, there is a rapidly declining fiat market share on centralized exchanges, with activity moving towards US dollar stablecoin. The overwhelmingly chosen stablecoin is Tether. Bid-ask spreads have become tighter for the two assets, Bitcoin and Ethereum, in sharp contrast to the widening spreads among other crypto assets further down the line. Liquidity is the heartbeat to which capital resonates, seeking out efficiencies. Our Indices serve as a navigational instrument by which they can be identified.