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Ethereum Surpasses $200B Market Cap

Ethereum has surpassed the $200 billion market cap, outpacing well-established companies such as Novartis and AT&T. Ether's value has risen 150% this year, contributing to its market capitalization.

Ethereum coin
Ethereum coin

Crypto vs. Traditional Valuation Metrics

When evaluating cryptocurrencies, there is no single metric to measure their potential, unlike traditional investments, where earnings, sales, and market share are commonly used. Ether functions as both a store of value and the token required for accessing the Ethereum network. This is why market capitalization, though not perfect, is a reliable way to compare cryptocurrencies to traditional assets.

The Importance of Coin Quantity in Market Cap

Market capitalization works for all assets, including commodities, stocks, and mutual funds. The number of outstanding coins is just as significant as the unitary price. Cardano, for instance, is priced under $1, but its market cap is over $26 billion. Meanwhile, Cover Protocol's unitary price is close to $1,600, yet its market capitalization is less than $100 million.

Ethereum coin
Ethereum coin

Ethereum's Market Cap Comparison to Major Companies

Ethereum's market cap has surpassed that of Novartis, AT&T, and Cisco, as reported by Comparing Ethereum's market cap with these companies is reasonable, as potential investors may choose one.

Decentralization Offers a Higher Valuation

Compared to centralized companies, decentralized protocols like Ethereum are more insulated from risks such as additional shares, taxes, liabilities, and government control. This factor justifies Ethereum's higher valuation.