BTC and ETH market value VS the seven giants of US stocks: who is the winner?

Author: Shane Neagle, Coingecko; Translation: Tao Zhu, Golden Finance

The phenomenon of the seven giants’ stocks is the result of integration. When a company monopolizes a specific market space, it will gain enough momentum to continue to rise and swallow start-ups that may threaten it in the future. In addition, these companies often expand their product scale more efficiently and further consolidate their market position.

This process occurred with Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Meta Platforms (META), Amazon (AMZN), NVIDIA (NVDA) and TSL (TSLA). US Bank analyst Michael Hartnett referred to them as the ‘Seven Titans’ in April 2023, at which point these stocks contributed 88% of shareholder returns.

Despite TSL losing its lead, the performance of the Magnificent Seven still outperforms the broader market. The Roundhill Magnificent Seven ETF (MAGS) has a year-to-date return of 35.8%, while the benchmark S&P 500 (SPX) has a return of 15.1% over the same period.

The seven giant stocks (which account for about 30% of the S&P 500 index) represent the concentrated market of US technology stocks with their extraordinary market performance. How do they compare to other non-profitable technologies such as the Blockchain network?

Specifically, how do the seven giant stocks compare to BTC (BTC), representing Proof of Work, and ETH (ETH), representing Proof of Stake?

Has the performance of Cryptocurrency surpassed that of the seven giants?

Cryptocurrency’s performance is better than most of the seven tech giants’ stocks, but compared to stocks, the Market Cap of Cryptocurrency in 2019 is also significantly lower. How did the seven tech giants, BTC, and Ethereum perform?

Ranked by Market Cap weight, the rankings for the five-year period (from May 7, 2019 to June 28, 2024) are as follows:

From the perspective of the rise in valuation speed, NVIDIA and TSL are clearly the winners, rising by 2,782.8% and 1,102.2% respectively. Amazon and Meta are the slowest rising companies.

The combined Market Cap of these two companies is 15.77 trillion USD, which has risen by 262.5% compared to 4.35 trillion USD five years ago.

Over the past five years, Nvidia has outperformed BTC and ETH.

Nvidia is the only stock among the seven giants that has outperformed Ethereum and Bitcoin in the past five years. Its market capitalization has risen from 105.42 billion USD to 30.39 trillion USD, a rise of 2782.8% during this period. As of June 28, 2024, BTC and Ethereum account for 66.9% of the total market capitalization of the cryptocurrency, which is 24.6 trillion USD. They are 12.5 trillion USD (49.9%) and 421 billion USD (17.0%), respectively.

In the past five years, from May 8, 2019 to June 28, 2024, the Market Cap of Ethereum (ETH) has increased from $18.16 billion to $368.3 billion, a rise of 1,880% in Market Cap.

In the past five years, from May 8, 2019 to June 28, 2024, BTC (BTC) Market Cap rose from nearly 6 times of $1039.8 billion to $12571.6 billion, Market Caprise increased by 1,109%.

In other words, considering that Ethereum was launched six and a half years after BTC, Ethereum’s performance is 1.7 times higher than BTC. Therefore, Ethereum’s riseBenchmark is lower Market Cap compared to the seven giant stocks:

• The Market Cap of Ethereum is consistent with Nvidia, at 2,218.3% and 2,782.8% respectively.
• BTC’s Market Cap performance is consistent with TSL, at 1,102.2% and 1,340.8% respectively.

How does the Market Cap of the seven giants compare to BTC and Ethereum?

Surprisingly, the US Securities and Exchange Commission (SEC) has changed its stance on Ethereum (ETH) ETFs. As of May 23, 2024, the market regulator has approved three exchanges to list and trade Ethereum funds. There are a total of 8 Ethereum ETFs listed on the New York Stock Exchange Arca, Nasdaq, and the Chicago Board Options Exchange (BZA).

Considering this new development, as of June 28, 2024, the market capitalization of all seven giants except Bitcoin and ETH is as follows.

Considering the rise in the past five years, Nvidia and Ethereum have achieved the highest comparable Market Cap rise since May 2019, at 2,782.8% and 2,218.3% respectively.

They collectively hold a value of 17.44 trillion dollars, with BTC and ETH accounting for 9.6%.

The Market Cap Difference between BTC and Ethereum

From the above figure, it can be seen that the fluctuations of BTC and Ethereum are consistent with the bullish and suppressive events.

• PayPal announced the integration of Cryptocurrency in October 2020.
• Elon Musk’s abandonment of BTC payment and turning to Tesla is a major suppression event.
• In May 2022, Terra (LUNC) ended the Bull Market crash.
• The Fed started raising interest rates in March 2022, maintaining a tightening bias.
• After the bankruptcy of many companies such as BlockFi and Celsius, 2022 ended with the collapse of the third largest Cryptocurrency exchange FTX in November volume.
• From the US regional banking crisis in March 2023, BTC and ETH began to recover.

However, after the Securities and Exchange Commission in the United States approved 11 BTC ETFs on January 11, 2024, there has been a greater divergence in the rise of BTC and Ethereum. Since institutions adopted this milestone, the BTC Market Cap has risen from $838.38 billion to $1.25 trillion, increasing by 50% in Market Cap.

During the same period, the Ethereum Market Cap rose from 2811.4 billion USD to 4210 billion USD, a rise of 50%. This is not surprising, as Ethereum is about to launch its own ETF lineup. However, Ethereum’s market capitalization is much smaller than that of Bitcoin, so people may expect it to perform better.