On October 27, the Tokyo Stock Price Index (TOPIX) closed at 3,325.05 points, up 55.60 points from the previous trading day, once again setting a new all-time high. On the same day, the Nikkei Average also broke through the 50,000 yen mark for the first time.
Meanwhile, in the seemingly distinct world of cryptocurrency, the global leading exchange Gate achieved remarkable growth in Q3 2025, surpassing 41 million users, with both derivatives and spot trading volumes hitting record highs.
These two hotspots—representing traditional finance and digital assets—are telling parallel stories of market growth, driven by similar underlying logic.
01 Understanding TOPIX: The Core Barometer of Japan’s Stock Market
The Tokyo Stock Price Index (TOPIX) is a free-float market capitalization-weighted index compiled by the Tokyo Stock Exchange, covering all companies listed on the First Section.
The index sets the base market capitalization as of January 4, 1968 at 100 points, and calculates the current index based on the total market capitalization.
TOPIX has been calculated and published since July 1, 1969, and is now released in real time (every 15 seconds) to financial institutions and information providers worldwide.
As one of the most important benchmarks for the Japanese stock market, TOPIX comprises around 1,700 constituent stocks, representing about 97% of Japan’s total market capitalization, accurately reflecting the movements of the Japanese equity market.
02 Record-Breaking Journey: Recent Market Performance of TOPIX
In May 2023, TOPIX closed at 2,127.18 points, reaching its highest level since August 1990, mainly driven by foreign capital inflows and corporate reforms.
This upward trend intensified in 2025. On October 6, TOPIX rose 3.1% to close at 3,226.06 points.
Then, on October 9, TOPIX gained 22.11 points to close at 3,257.77, a 0.68% increase, setting a new all-time high.
By October 27, TOPIX further climbed to 3,325.05 points, demonstrating robust and sustained growth.
03 Driving Forces: Artificial Intelligence and Export Sectors
TOPIX’s recent strong performance has been fueled by a series of positive factors.
Expectations of growing demand for artificial intelligence (AI) have led to a surge in semiconductor stocks, with SoftBank Group—owner of semiconductor design giant ARM—seeing a significant rally.
Key stocks with heavy weighting in the Nikkei Index, such as Tokyo Electron and Shin-Etsu Chemical, have also attracted strong investor interest.
Additionally, in Tokyo’s foreign exchange market, the yen continued to weaken against the dollar, prompting investors to buy stocks in export sectors such as machinery and electronics in anticipation of improved earnings.
Optimism surrounding new economic policies expected from the Liberal Democratic Party’s new president, Sanae Takaichi, also continued to support the market’s bullish momentum.
04 Crypto Market Reference: Gate Exchange’s Parallel Growth
While traditional stock indices are soaring, the cryptocurrency exchange Gate is experiencing a similar growth trajectory.
In Q3 2025, Gate’s global user base surpassed 41 million, with both derivatives and spot trading volumes reaching new highs.
Gate’s derivatives trading volume ranked among the top three globally for month-over-month growth in July, and surged nearly 100% in August, pushing its market share to 10.1%—the highest increase in the industry.
The spot market also performed strongly, with market share rising 2.87% since the beginning of the year, the largest increase among major global exchanges.
This synchronized growth is no coincidence; it reflects the increasing correlation between traditional finance and the crypto market.
05 Index Investing: Bridging Traditional and Crypto Markets
In traditional finance, TOPIX serves as a key benchmark index, spawning a wide range of linked ETFs and related financial products.
These products allow investors to easily participate in the overall growth of the Japanese stock market.
A similar index investing concept is taking root in the crypto world.
In October 2025, S&P Global launched the S&P Digital Markets 50 Index—a hybrid basket comprising 15 cryptocurrencies and 35 publicly traded crypto-related stocks.
The index also plans to introduce a tokenized version, enabling investors to purchase directly on-chain.
Gate Exchange has also introduced an equal-weighted crypto index product, aiming to provide more balanced market exposure.
Unlike traditional market-cap-weighted indices, Gate’s equal-weighted index distributes funds evenly across multiple cryptocurrencies, reducing concentration risk and increasing exposure to potentially high-growth smaller assets.
06 Risk and Management: A Shared Challenge for Both Markets
Both traditional stock markets and crypto markets face the challenge of risk management.
On August 5, 2024, TOPIX dropped more than 6% in early trading, triggering circuit breakers.
Later, in April 2025, TOPIX’s decline widened to 9% due to U.S. tariff factors.
These fluctuations remind investors that even mature indices like TOPIX are not immune to short-term volatility.
The crypto market is also known for its volatility, but innovative product designs—such as Gate’s equal-weighted index—can help manage risk to some extent.
The equal-weighted approach significantly reduces exposure to dominant assets while increasing allocation to smaller, potentially high-growth cryptocurrencies.
During broad market rallies or when small-cap altcoins outperform major cryptocurrencies, equal-weighted indices often deliver superior results.
07 Looking Ahead: An Interconnected Financial Ecosystem
As the boundaries between traditional finance and crypto assets continue to blur, TOPIX and Gate are forming more points of intersection between their respective worlds.
In traditional finance, Nomura Securities predicted in October 2025 that TOPIX could reach 3,300 points by year-end—a target already surpassed on October 27.
In the crypto space, Gate is advancing its "All in Web3" strategy, integrating its centralized exchange functions with Web3 infrastructure.
Both worlds share similar development logic: increased institutional participation, diversified products, enhanced risk management tools, and continued inflows of global capital.
