In recent years, the landscape of global financial markets has changed significantly, with competition between technology giants and cryptocurrencies becoming increasingly fierce. Seven tech giants, Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Meta Platforms (META), Amazon (AMZN), Nvidia (NVDA) and Tesla (TSLA), dominate the market. Known as the "Big Seven". At the same time, Bitcoin (BTC) and Ethereum (ETH), as representative cryptocurrencies, are also emerging in the market. So, how do the market caps compare between these tech giants and cryptocurrencies? Who is the real winner?
Market dominance of the Big Seven
The success of the Big Seven is no accident. These companies have consolidated their market positions by consolidating the market, monopolizing specific areas, and continuously expanding their products and services. Bank of America analyst Michael Hartnett called these seven companies the "Big Seven" in April 2023, noting that they contributed 88% of the returns to shareholders.
Despite Tesla's decline in recent years, the Big Seven as a whole has continued to outperform the broader market. The Roundhill Magnificent Seven ETF (MAGS) has returned 35.8% this year, while the S&P 500 (SPX) has returned 15.1% over the same period. The Big Seven stocks (about 30% of the S&P 500) represent a concentrated market for U.S. technology stocks, and their outperformance has further solidified their leading position.
Cryptocurrency market performance
How have Bitcoin and Ethereum performed over the past five years compared to the Big Seven? Judging from the growth rate of market value, Nvidia and Tesla are clearly the winners, with increases of 2,782.8% and 1,102.2% respectively. In comparison, the market value growth of Bitcoin and Ethereum is also very significant, but still inferior to Nvidia.
Bitcoin’s market cap grew 1,109% from $103.98 billion in 2019 to $1,257.16 billion. Ethereum’s market cap grew 1,880% from $18.16 billion to $368.3 billion. Despite Ethereum’s lower base for market cap growth, it still grew faster than Bitcoin.
Specific market value comparison
Notably, Nvidia is the only company among the Big Seven to outperform both Ethereum and Bitcoin over the five-year period, with its market cap increasing by 2,782.8% from $105.42 billion to $3.039 trillion. As of June 28, 2024, Bitcoin and Ethereum have market caps of $1,250 billion (49.9% of the total) and $421 billion (17.0% of the total), respectively.
Over the past five years, Ethereum's market value has grown by 2,218.3%, close to Nvidia's 2,782.8%. Bitcoin's market value has grown by 1,102.2%, similar to Tesla's growth rate.
Institutional adoption and future prospects
The U.S. Securities and Exchange Commission (SEC) recently approved three exchanges to list and spot trade Ethereum funds, a milestone that marks an important step in institutional adoption of cryptocurrencies. Since the SEC approved 11 Bitcoin ETFs on January 11, 2024, the market capitalization of Bitcoin and Ethereum has increased by 50%.
Although the Ethereum market is much smaller than Bitcoin, its market capitalization growth rate is on par with Bitcoin, showing its strong market potential. With the inflow of more institutional funds in the future, the market capitalization of Bitcoin and Ethereum may continue to climb.
