For a long time, Bitcoin was compared to stocks, and Ethereum is the second most actively traded asset on the market. Crypto enthusiasts have suggested that cryptocurrencies give much better returns than traditional investments such as stocks and bonds. The extent to which the concept was true was debated. Nonetheless, Nasdaq just added Ethereum to its list of highly traded assets, joining companies such as BlackBerry and Microsoft.
Ethereum outperforms the market’s top stocks.
According to Nasdaq, Ethereum is expected to be one of the most actively traded assets during the coming week. It was rather interesting that this occurred during a period of significant price consolidation. Most of this month’s trading has been in the range of $3,300 and $3,000, but this consolidation has made Ethereum a more attractive choice for the large financial players.
Particularly noteworthy is that ETH’s price has fallen even lower since August 9, when it began to stabilize, and even during stabilization, this small pattern of the increasing trend worked in favor of the top altcoin. In particular, traders were expected to migrate into Ethereum in the next week, as the asset’s value grew not only in terms of returns but also in terms of risk aversion.
The benefits of reduced risk outweigh the risks.
When compared to other top equities from the next week, such as BlackBerry, Lucid Motors, and Big Lots, the Ethereum Sharpe ratio was extremely outstanding. Sharpe ratio for BlackBerry was 0.0207, which means that during the past three months, the company generated 0.0207 percent annualized return per unit of standard deviation
In addition, it was considered to be a risky investment when compared to other stocks. Because of its recent stability, Ethereum, on the other hand, has demonstrated its ability to withstand significant risk.
On the 20th of August, the Ethereum Sharpe ratio reached 9.41, which was the highest value recorded so far this year. At the time of writing, there had been a more than 50% fall in value, and its current worth was $4,87. However, even with the fall, it was still significantly higher than the stocks of the aforementioned companies.
At the time of publication, Ethereum’s one-month return on investment was 29.75 percent, and its one-year return on investment was 701.32 percent. A cryptocurrency that ranks first among the most actively traded stocks in the larger market is making way for other cryptocurrencies in the mainstream market.