Consolidation is ubiquitous in today's global financial markets. When a company achieves a monopoly in a specific market segment, its growth momentum will be significantly enhanced and it may annex potentially threatening start-ups. These companies often have the ability to scale their products efficiently, further consolidating their market positions. Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Meta Platforms (META), Amazon (AMZN), Nvidia (NVDA) and Tesla (TSLA) are prime examples.

Market dominance of the Big Seven

Bank of America analyst Michael Hartnett dubbed the companies the “Big Seven” in April 2023. At the time, the stocks delivered 88% of the market’s return to shareholders. While Tesla’s lead has waned, the Big Seven as a whole has outperformed the market. The Roundhill Magnificent Seven ETF (MAGS) has returned 35.8% year to date, while the S&P 500 (SPX) has returned just 15.1% over the same period.

The Big Seven stocks make up about 30% of the S&P 500, representing the concentrated market for U.S. tech stocks. How does the cryptocurrency market perform in comparison? Especially the two representative cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH).

Cryptocurrency vs. the Big Seven

In terms of market capitalization weighting, the performance between May 7, 2019 and June 28, 2024 is as follows:

  • Nvidia: Market value increased by 2,782.8%

  • Tesla: Market value increased by 1,102.2%

  • The other seven giants had lower market capitalization growth rates, but their overall performance remained strong.

Nvidia has performed particularly well over the past five years, with its market cap growing 2,782.8% from $105.42 billion to $3.039 trillion. In comparison, Bitcoin and Ethereum have grown 1,109% and 1,880%, respectively.

Market capitalization growth analysis

Nvidia and Cryptocurrency

Nvidia is the only stock that outperforms both Ethereum and Bitcoin over a five-year period. As of June 28, 2024, Nvidia’s market cap is $3.039 trillion, while Bitcoin and Ethereum account for 49.9% and 17.0%, respectively, of the total cryptocurrency market cap of $2.46 trillion.


Ethereum vs Bitcoin

Ethereum (ETH)'s market cap increased by 1,880% from $18.16 billion to $368.3 billion, while Bitcoin (BTC)'s market cap increased by 1,109% from $103.98 billion to $1,257.16 billion. Ethereum's growth rate was slightly higher than Bitcoin's, indicating that it outperformed against a lower market cap benchmark.

Market performance comparison

  • Ethereum’s market cap performance was consistent with Nvidia’s at 2,218.3% and 2,782.8%, respectively.

  • Bitcoin’s market capitalization performance is similar to Tesla’s, at 1,102.2% and 1,340.8%, respectively.

The Big Seven vs. Crypto Market Cap

As of June 28, 2024, excluding Bitcoin and Ethereum, the market capitalizations of the Big Seven are as follows:

  • Nvidia and Ethereum achieved the highest market capitalization growth, at 2,782.8% and 2,218.3%, respectively.

  • The combined market capitalization of the Big Seven reaches $17.44 trillion, with Bitcoin and Ethereum accounting for 9.6%.

Market capitalization fluctuations and event-driven

The market value fluctuations of Bitcoin and Ethereum are closely related to market events. For example, in October 2020, PayPal announced the integration of cryptocurrencies, which triggered a market boom. Tesla CEO Elon Musk's abandonment of BTC payments and switching to Tesla's payment system was a major market suppression event.

The Terra (LUNC) crash in 2022 and the subsequent Fed rate hikes pushed the market into a bear market. However, starting with the US regional banking crisis in March 2023, BTC and ETH began to recover.

The market is unpredictable and opportunities are fleeting. Only by paying close attention to every subtle change and seizing your own opportunities can you remain invincible in the ups and downs of the market. Are you ready today? Let's look forward to the wonderful performance of the market together!
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