For a long time, Bitcoin has been compared to stocks, and Ethereum is the next big thing to catch on as a top-traded asset. Crypto advocates have argued that cryptocurrencies offer significantly higher returns than stocks. It was hotly argued how much truth the idea included. Nonetheless, Nasdaq has listed Ethereum among firms like BlackBerry as a highly traded asset.
Ethereum outperforms the market leaders.
Nasdaq has named Ethereum as one of the top trade assets for the coming week. The fact that this occurred at a period of strong price consolidation was intriguing. For most of this month, Ethereum has been trading between $3300 and $3000, but this consolidation has made Ethereum a better alternative for the larger financial industry players.
Notably, since August 9, when its price began consolidating, ETH has made higher lows, and this minor upward trend, even during consolidation, has played in favor of the top alt. Traders were predicted to flock to Ethereum in the following week, as the asset improved not only in terms of returns but also in terms of risk aversion.
Higher rewards with less risk
The Shape ratio of Ethereum, as well as the other top stocks for the coming week, such as BlackBerry, Lucid Motors, and Big Lots, appeared to be rather strong. BlackBerry received a Sharpe ratio of 0.0207, indicating that over the previous three months, the company generated 0.0207 percent return per unit of standard deviation. It was also seen as less hazardous when compared to other equities. Due to its recent consolidation, Ethereum, on the other hand, has exhibited resilience to excessive risk.
Table: Ethereum vs Other Top Equities
| Asset | Sharpe Ratio | 1-Month ROI | 1-Year ROI | Risk Level |
|---|---|---|---|---|
| Ethereum (ETH) | 4.87 (peak 9.41) | 29.75% | 701.32% | Moderate-Low |
| BlackBerry (BB) | 0.0207 | 3.1% | 15.8% | Low |
| Lucid Motors (LCID) | 0.18 | 8.9% | 67.5% | Medium |
| Big Lots (BIG) | 0.12 | 2.4% | 10.2% | Low-Medium |
Ethereum stands out with the highest Sharpe ratio and ROI performance among major listed assets.
On August 20, the Sharpe ratio for Ethereum reached 9.41, the highest value this year. At the time of writing, the value of the same had dropped by over half, to 4.87. Even with the drop, it was still a lot more than the stocks of the aforementioned corporations. Furthermore, at press time, Ethereum had a one-month ROI of 29.75 percent and a yearlong ROI of 701.32 percent.
The leading altcoin making its way into the top traded equities of the broader market clears the way for other altcoins to enter the mainstream market.
As a result, Ethereum is a serious contender among the best-performing equities.
Key Takeaway
As Ethereum continues to perform alongside — and even surpass — traditional equities, it’s proving itself to be a serious contender among the best-performing assets.
Its strong Sharpe ratio, impressive ROI, and lower risk profile make Ethereum a favorite for investors seeking both growth and stability in the evolving digital economy.
