Ethereum surpassed companies like Novartis and AT&T to reach a market value of $ 200 billion.
Market cap of Ethereum
Ethereum (ETH) has increased 150% in 2021 and its market cap has risen to over $ 200 billion.
Investors, especially those from the traditional sector, take into account the market value of a company to demonstrate the importance of earnings, sales. Meanwhile, while evaluating a cryptocurrency with multiple use cases, there is no single metric to measure its potential. Ethereum functions as a token required to access the ETH network while simultaneously acting as a digital store of value.
While the benefits of comparing assets of different classes side by side are controversial, market value works the same for commodities, stocks, and mutual funds. In addition to the average trading volume, some additional metrics are often used to analyze an asset size, including the amount of free circulation that is effectively available for trading.
According to 8marketcap.com, Ethereum’s market cap has recently surpassed Novartis ($ NVS), AT&T ($ T) and Cisco ($ CSCO).
The value of companies
The origin of Novartis International AG, based in Switzerland, dates back to 1857. With more than 110,000 employees, the pharmaceutical manufacturer generated a net income of $ 8.1 billion in 2020.
Moreover, companies run the risk of creating additional shares, unlike Ethereum’s fixed supply schedule. Similar problems arise when it comes to taxes, liabilities and potential government control. However, decentralized protocols are more isolated from such risks. Hence it justifies a much higher valuation.
Cisco Systems was ordered to pay $ 1.9 billion in a patent infringement case in October 2020. In January 2021, AT&T was sued for at least $ 1.35 billion in damages by a company in Seattle.
As a result, although it makes sense to compare the market values of various assets, the purely technological nature of cryptocurrencies provides a much wider plus.