Ethereum’s Market Capitalization Exceeded GM, CME, and Tech Stocks

2020 has been an exciting year for the Ethereum network and the price of Ether. Last month, the Eth2 deposit contract launched without anyone knowing. By the end of November, the contract reached its goal with 524,288 Ether locked.

On March 12, when the stock market crashed, almost all cryptocurrencies saw their price crushed, and Ether was not an exception. However, after trading at $86 on March 12, Ether’s price rallied to a 322% gain. On December 1, the altcoin set an annual high at $635.70.

Bitcoin got a new all-time high earlier today. Despite the price it received, the price of Ethereum has surpassed BTC this year. However, Ether is still below its 2018 all-time high of $1,431 by approximately 59%. Despite that fact, the top altcoin’s $67 billion market cap has outperformed automaker General Motors and the CME Group.

Long-term investors establish multiple competition scenarios while traders are primarily concerned with price and volume.

It’s worth mentioning that some of the newer trading platforms offer to trade both assets, cryptocurrency, and stock trading.

Mobile app-based stockbrokers have tens of millions of users, and thanks to the ease of access these platforms offer, it’s easier for a large number of investors to interact with digital assets.

How Ether compares to companies of similar market capitalization

Colgate-Palmolive, an American multinational consumer products company, is a member of the S&P 500 index. It has a market capitalization of $73 billion. The company formed in 1806 and posted a net income of $2.7 billion in the last 12 months.

US Bancorp, the fifth-largest US bank, also has a market capitalization of $67 billion. It is also a member of the S&P 500. The company was founded in 1968 and also owns Elavon, a credit card processor.

Finally, with a market capitalization of $64 billion, the CME Group that owns the Chicago Mercantil Exchange was founded 172 years ago. Its net income amounted to $2.1 billion in the last 12 months, and its stocks are also featured in the S&P 500 index.

While Ether shares a similarly sized market capitalization, it is nothing like the companies mentioned above. Cryptocurrencies do not have balance sheets or income statements. Therefore, Ether behaves more like a commodity like gold, oil, and Bitcoin. 

While Ether’s 90-day annualized rate exceeds 80%, it stands at 20% for Colgate-Palmolive and 32% for CME. Meanwhile, US Bancorp acts in a volatile manner at 47%. While it is unusually high for most stocks, there is still a long way to reach the levels seen among cryptocurrencies.