Traditional investments are over for Bitcoin and its peers United State, United Kingdom, Singapore, and Hong Kong digital currency users are the happiest for now as the rising stars of the banking sphere have triumphed over traditional financial assets.
Three major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), show higher total annualized returns than conventional finance assets today. As per the updated report of Exponential Age Asset Management (EXPAAM) which has been recently shared by Raoul Pal, Co-Founder and CEO of Real Vision, customers have seen these crypto assets outshining their analogues in international finance.
Bitcoin ranks top with a 14. 1% increase in the market and being the only cryptocurrency to register a cumulative return of $22,497,039%. Increased by 152% with cumulative returns at 404,384%. Solana fared even better delivering a stellar annualized return of 224% and an overall gain of 10836% of the principal invested.
This therefore provides evidence for the next part of the hypothesis which is that TradFi assets produce a higher overall portfolio return compared to Defi assets.
The EXPAAM index which we have computed to track emergence of various assets over the past fourteen years displays that among the global portfolio comprising of global equities, U. S. NASDAQ with a cumulative appreciation of 823% at 17% compound annual returns is the first non-crypto asset. Gold is at the other end of spectrum of being ranked in the bottom three with a total return of 55%, at 3%, annualized over the past 14 years. The other two assets that have poor performance moving forward are US Cash (BIL) and Commodities (DBC).
Here, fundamentals refer to the basic characteristics of the development and frameworks of the tokens involving Bitcoin, Ethereum, and Solana.
They have thereby, bio catalyzed the much-needed flow into the market especially with the spot Bitcoin ETF addition, which has powered Bitcoins performance. Indeed, both of these products were recently introduced in the United States and the total level of foreign investment is at thirty one. 50 billion by excluding Grayscale’s GBTC outflows.
Institutional investors seem to be paying for the elevated risk by liquidating Grayscale’s GBTC and investing in BTC . BlackRock and Fidelity, to mention but a few have been responsible for these inflows, thus exerting major influence on the future of Bitcoin.
Ethereum benefitted from !SEC’s approval for spot ETF which made the market more appealing for this crypto. Outside the US, Ethereum ETFs have also been approved in places such as Hong Kong, for instance. Opinions are rife that Thailand, which has just green-lit a spot Bitcoin ETF, might right away follow suit to grant a spot Ethereum ETF.
Recently, decentralized finance or Defi has been very popular together with the use of memecoins in the Solana ecosystem. Solana’s memecoins, including DogeWifHat, BONK, and Popcat, have continued to help Solana achieve regular and often exceptionally high results regardless of unfavorable periods. These memecoins have placed Solana in the third position of high annualized returns in the crypto market.
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