Today, Ethereum joined the Bitcoin and Ripple in the $100billion+ market cap club. This is even more remarkable for a Cryptocurrency which was valued around $0.9 billion this time last year: an ~11,000% rise in value.
Source: Coinmarketcap.com on 6th January 2018
The value of Ethereum is still in a speculative stage of price discovery. There has never been an asset like this, and markets are playing with demand to see what price is stable. It is unique in that a large number of the other Cryptocurrency tokens are ERC-20 assets based on Ethereum itself, so it derives demand not just from itself, but from the success of a large number of competing projects. Nevertheless, it is still an interesting exercise to compare it directly to the market capitalisation of leading companies in the US S&P 500.
Ethereum Versus the S&P 500
The S&P 500 is a US stock market index based on the market capitalisation of the 500 largest companies with stock on the NYSE (New York Stock Exchange) or NASDAQ. These are the two largest stock markets in the world and contain a significant proportion of the world’s largest publicly traded companies.
Stock data taken from http://markets.businessinsider.com/ as of 5th January 2018 and converted to USD at a rate of 1EUR = 1.2 USD. Data then manipulated in Excel. Feel free to reuse this chart but please link back to this source.
Interestingly enough, it wasn’t quite as easy to find a market capitalisation table for the S&P 500 as it is for cryptocurrency capitalisation tables. I had a quick check to see if the domain ‘stockmarketcap.com’ was taken – it was, so let’s see what they have planned!
Back to the point, if Ethereum was compared directly to a publicly traded stock, it would be the 61st largest by market capitalisation, just between Costco and Starbucks.
Nike may have been around since 1964 and become one of the world’s most well-known brands, but Ethereum increased more in value in just 1 year!