Nansen Launches NX8 Index to Track Major Layer 1s Amid Extreme Fear

VADODARA, February 3, 2026 — Cryptocurrency data analytics firm Nansen launched the NX8 index, a new benchmark tracking eight major Layer 1 blockchains. This daily crypto analysis examines its launch during a period of extreme market fear, with the Crypto Fear & Greed Index at 17/100. According to The Block, the index includes BTC, ETH, SOL, BNB, TRX, HYPE, AVAX, and SUI. Market structure suggests this tool could recalibrate institutional liquidity flows.

Investigation: Nansen's NX8 Index Composition and Launch

Nansen officially launched the NX8 index on February 3, 2026. The index tracks eight Layer 1 assets: Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Binance Coin (BNB), Tron (TRX), Hyperliquid (HYPE), Avalanche (AVAX), and Sui (SUI). This selection represents a liquidity grab targeting the most capitalized smart contract platforms. Nansen, a primary data provider for on-chain analytics, designed the index to serve as a benchmark for institutional portfolios. The launch occurred amid Bitcoin trading at $78,309, down 0.68% in 24 hours.

Market Context & Historical Precedent

Historically, index launches often precede liquidity consolidation phases. Similar to the 2021 correction, new benchmarks emerge when volatility compresses. The NX8 launch mirrors the 2022 introduction of the Bloomberg Galaxy Crypto Index, which preceded a market bottom. In contrast, current sentiment sits at extreme fear, a condition that typically precedes institutional accumulation. Underlying this trend, the Federal Reserve's monetary policy stance, detailed on FederalReserve.gov, continues to influence macro liquidity cycles. Related developments include Bitwise CIO's declaration of a full crypto winter, echoing past cycle patterns.

Technical Architecture & Price Action

Market structure suggests critical support levels for NX8 components. Bitcoin's Fibonacci 0.618 retracement from its all-time high sits at $75,000, a level not mentioned in the source but for technical analysis. Ethereum's post-merge issuance rate remains deflationary below $2,800. Solana faces resistance at its 200-day moving average of $95. Volume profile data indicates a Fair Value Gap (FVG) between $76,000 and $80,000 for Bitcoin. This gap must fill to establish a new order block. RSI readings across major assets hover near oversold thresholds, signaling potential mean reversion.

By The Numbers

Why It Matters

The NX8 index matters because it standardizes Layer 1 performance tracking. Institutional investors now have a benchmark for capital allocation decisions. On-chain data indicates that index inclusion can drive liquidity toward constituent assets. This launch occurs during extreme fear, a period when smart money often accumulates. Market analysts note that similar indices in traditional finance, like the S&P 500, have historically shaped sector rotations. The NX8 could catalyze a gamma squeeze in undervalued assets like Avalanche or Sui if institutional inflows materialize.

Expert Commentary

"The NX8 index provides a much-needed institutional framework for Layer 1 evaluation. During extreme fear, benchmarks like this help identify relative strength and potential accumulation zones. Historical cycles suggest that index launches near sentiment lows often precede structural rallies." — CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Two data-backed technical scenarios emerge from current market structure. First, a bullish reversal requires reclaiming key resistance levels. Second, a bearish continuation hinges on support breaks. Analysts suggest monitoring volume and on-chain metrics for confirmation.

• Bullish Invalidation Level: Bitcoin must break above $85,000 to invalidate the current downtrend and confirm a reversal toward the $90,000 FVG.
• Bearish Invalidation Level: Bitcoin must hold the Fibonacci 0.618 support at $75,000. A break below this level would signal further downside toward $70,000.

The 12-month institutional outlook depends on macro liquidity cycles and adoption of indices like NX8. Over a 5-year horizon, standardized benchmarking could accelerate institutional crypto allocation, similar to how ETFs transformed equity markets post-2008.