CoinGecko: Comparing Bitcoin (BTC) & Ethereum (ETH) vs Magnificent Seven by Market Cap

The
phenomenon
of
the ‘Magnificent
Seven’
stocks
arose
from
market
consolidation,
where
dominant
companies
continue
to
grow
by
acquiring
potential
competitors
and
scaling
efficiently.
This
group
includes
Apple
(AAPL),
Microsoft
(MSFT),
Alphabet
(GOOGL),
Meta
Platforms
(META),
Amazon.com
(AMZN),
Nvidia
(NVDA),
and
Tesla
(TSLA),
as
coined
by
Bank
of
America
analyst
Michael
Hartnett
in
April
2023,
according
to CoinGecko.
These
stocks
contributed
to
88%
year-to-date
returns
for
shareholders
at
that
time.

Despite
Tesla’s
recent
struggles,
the
Magnificent
Seven
still
outperform
the
broader
market.
The
Roundhill
Magnificent
Seven
ETF
(MAGS)
returned
35.8%
year-to-date
compared
to
the
S&P
500
(SPX)
at
15.1%
for
the
same
period.
These
stocks
represent
about
30%
of
the
S&P
500,
highlighting
their
significance
in
the
US
tech
market.

Has
Crypto
Outperformed
The
Magnificent
Seven?

While
cryptocurrencies
like
Bitcoin
(BTC)
and
Ethereum
(ETH)
have
managed
to
outperform
most
of
the
Magnificent
Seven
stocks,
they
started
with
significantly
lower
market
caps
in
2019.
Over
five
years,
from
May
7,
2019,
to
June
28,
2024,
the
market
cap
performance
of
these
assets
is
as
follows:

Nvidia
and
Tesla
stand
out
with
their
rapid
valuation
increases
of
2,782.8%
and
1,340.8%,
respectively.
Combined,
these
companies
have
a
market
cap
of
$15.770
trillion,
a
262.5%
increase
from
five
years
ago.

Nvidia
Outperformed
Bitcoin
&
Ethereum
Over
The
Last
Five
Years

Nvidia
is
the
only
stock
in
the
Magnificent
Seven
that
outperformed
both
Ethereum
and
Bitcoin
over
the
five-year
period.
Its
market
cap
grew
from
$105.42
billion
to
$3.039
trillion,
a
2,782.8%
increase.
As
of
June
28,
2024,
Bitcoin
and
Ethereum
make
up
66.9%
of
the
total
crypto
market
cap
of
$2.46
trillion,
with
Bitcoin
at
$1.250
trillion
(49.9%)
and
Ethereum
at
$421
billion
(17.0%).

Ethereum’s
market
cap
increased
from
$18.16
billion
to
$421
billion,
representing
a
2,218.3%
growth.
Bitcoin’s
market
cap
increased
from
$103.98
billion
to
$1.250
trillion,
representing
a
1,102.2%
growth.
Ethereum
outperformed
Bitcoin
by
1.7x
due
to
its
later
launch
and
lower
initial
market
cap.

How
Does
the
Market
Cap
of
Magnificent
Seven
Compare
Against
Bitcoin
&
Ethereum?

As
of
June
28,
2024,
the
combined
market
caps
of
the
Magnificent
Seven,
Bitcoin,
and
Ethereum
total
$17.44
trillion,
with
Bitcoin
and
Ethereum
comprising
9.6%
of
this
value.
Nvidia
and
Ethereum
achieved
the
highest
market
cap
growth
over
the
past
five
years
at
2,782.8%
and
2,218.3%,
respectively.

Bitcoin
and
Ethereum
Market
Cap
Divergence

Bitcoin
and
Ethereum’s
market
caps
have
experienced
various
bullish
and
bearish
events,
such
as
PayPal’s
integration
of
cryptocurrencies
in
October
2020
and
the
collapse
of
Terra
(LUNC)
in
May
2022.
The
SEC’s
approval
of
11
Bitcoin
ETFs
on
January
11,
2024,
marked
a
significant
milestone,
leading
to
a
50%
market
cap
growth
for
both
Bitcoin
and
Ethereum.
However,
Ethereum’s
market
is
still
smaller
than
Bitcoin’s,
making
its
performance
less
impressive
in
comparison.

Methodology

The
study
examined
the
market
cap
of
the
Magnificent
Seven
stocks
versus
Bitcoin
and
Ethereum
as
of
June
28,
2024.
Market
cap
data
for
the
Magnificent
Seven
stocks
was
collected
from
ycharts,
while
Bitcoin
and
Ethereum
data
was
sourced
from
CoinGecko.

Image
source:
Shutterstock