So far this year, the top cryptos have significantly outperformed the stock market. This is true both on a year-to-date basis and also over the past year.
Moreover, analysts expect this will likely keep up. That’s true especially if inflation and related concerns eat away at the value of traditional assets.
For example, take a look at the performance of the top 5 (non-stablecoin) cryptocurrencies, Bitcoin, Ethereum, Binance Coin, Cardano, and Solana, vs. the S&P 500.
You can see this in the chart I have prepared below. This shows the performance year-to-date of Bitcoin (BTC-USD), the largest crypto vs. the S&P 500 index (GSPC):
As you can see, Bitcoin has dramatically outperformed, although it took a major tumble in the middle of the year. In fact, its performance was essentially even with the S&P 500 at the end of June.
In fact, the outperformance is even greater if you take into account all the top 5 cryptocurrencies. You can see this in the following table and charts I have prepared.
In addition, even if we weighted these top 5 cryptos by their market cap, the average return is still +580%.
This table and chart uses the weighting of each of the top cryptos and multiplies that weight by the crypto’s return.
For example, Bitcoin has a 62.5% weighting and Solana has a 2.8% weight. But Solana’s performance was so high that it still produced over half of the 580.4% total return of the five cryptos.
