Will the U.S. stockization trend of cryptocurrency, which has been hotly discussed in institutional circles recently, become mainstream? Conclusion: This is most likely the case!
From the figure below, for our purposes, we often use the Nasdaq 100 Index to represent the 100 stocks with the largest market capitalization on Nasdaq. At the same time, the Russell 2000 index is used to represent small-cap stocks in U.S. stocks.
Since the beginning of the year, the S&P 500 Index has rebounded from 3839 to the previous high of 4607, an increase of up to 20%, of which 15.8% of the increase came from FAANG + MNT, namely Facebook, Apple, Amazon, Netflix, Google, Microsoft, Nvidia and Tesla . In other words, FAANG+MNT account for 25% of the S&P 500's market capitalization but are responsible for 79% of the year-to-date gain. (This can be compared to blue chip coins, such as the recent strong BTC #LINK #AAVE , etc.)
At the same time, the opposite phenomenon (Figure 3): Russell 2000 has fallen below the low point in September 22, setting a record: 52 consecutive weeks of decline. (This can be compared to small altcoins) With the integration of the Matthew effect, large enterprises or large encryption projects have their own strong barriers, capital research and development and market development, which should not be underestimated. Just like the R&D investment costs of the top listed companies in Figure 4.
When R&D + talent + capital + products form a flywheel effect, cryptocurrencies will be like the US stock market, forming a wave of mergers and acquisitions or suppression. If they do not obey mergers and acquisitions, they will develop one internally, put it on the market with lower contract revenue, gain overwhelming customer acquisition capabilities, and gain traffic and head partner advantages. In the end, the Matthew effect of cryptocurrency will be formed, and the strong will always be strong, and the weak will always be weak. Perhaps in this 2023-2025 cycle.
We will see this kind of phenomenon. So don't exclude the TOP50 large-cap blue-chip currencies. Once they have new narrative logic and expansion, they will gain greater advantages and head effects. Here#LINKand#RNDRset an excellent example! #ETF #FOMO #gbtc
