How big is the crypto? Market comparison with traditional asset classes

2021 was a record year for cryptocurrencies, with a global market capitalization surpassing $ 2 trillion for the first time.

NGRAVE put this milestone in a broader context and explored how big the crypto market is relative to other more traditional asset classes.

To assess the importance of the industry’s total market capitalization, the crypto security provider compared it to the value of other global industries.

Compared to precious metals, real estate, and stocks

Gold currently has a market capitalization of $ 11.4 trillion, making it about five times the size of the crypto market and 13 times the size of Bitcoin, also known as “digital gold.”

“In 2021, $ 10 billion was withdrawn from gold funds when BTC published new ATHs amid rampant money printing,” NGRAVE noted, noting the competition between the two as Bitcoin grew to represent a strong asset of ‘safe haven’.

However, compared to the size of the global silver market, which stands at $ 1.28 trillion, the crypto market capitalization is almost double.

Crypto vs precious metals (NGRAVE)
Crypto vs precious metals (NGRAVE)

“Most Important Reservoir of Wealth Known to Man” – The world’s real estate market is believed to be roughly four times the world’s GDP, estimated to be around $ 340 trillion, at least 160 times the size of the market capitalization cryptography.

While it compares to the $ 122 trillion global stock market, crypto is still tiny. However, the capitalization of the crypto market is more comparable to the EU stock market, which stands at $ 14 trillion, or even the US stock market, which is valued at $ 50 trillion.

Crypto vs stocks (NGRAVE)
Crypto vs stocks (NGRAVE)

Compared to GDP, public debt, and student debt

In the case of Gross Domestic Product (the value of all goods and services produced within a country), the crypto market compares well.

In fact, it would rank in the top ten, somewhere between France ($ 2.63 trillion) and Italy ($ 1.889 trillion).

The most advanced countries are Japan ($ 5.058 trillion), China ($ 14.723 trillion) and the US ($ 20.894 trillion). Meanwhile, only Bitcoin would make it to the top 20.

Crypto vs GDP (NGRAVE)
Crypto vs GDP (NGRAVE)

Global debt levels are at a record $ 226 trillion and out of reach, yet compared to national debt, the crypto market capitalization is not far from that of the UK, which stands at $ 2, 97 billion.

It is also in the ballpark of the US budget deficit for 2021 ($ 2.77 trillion) and the burden of US student debt ($ 1.7 trillion).

Crypto vs public and student debt (NGRAVE)
Crypto vs public and student debt (NGRAVE)

Compared to global industries and top stocks

NGRAVE estimated the total value of the cryptocurrency industry, which includes many companies that are not directly related to the issuance of cryptocurrencies, including hardware wallets, marketing and media agencies, mining companies, blockchain startups, payment networks, venture capital funds focused on cryptocurrencies, etc. – somewhere between $ 2.35 and $ 2.9 billion.

Compared to other global industries, cryptocurrencies made the top 10 last year, displacing the telecommunications industry ($ 1.74 trillion).

While approaching car manufacturing ($ 3 trillion), the crypto industry still lags behind oil and gas exploration and production ($ 4.6 trillion) and food ($ 5 trillion).

Meanwhile, the global financial services industry is still out of reach as it sits at the top, with a market value of $ 22.5 trillion.

Crypto Industry vs. Global Industries (NGRAVE)
Crypto Industry vs. Global Industries (NGRAVE)

Finally, when compared to the world’s best-performing stocks, the world’s largest tech giants, the crypto market capitalization is very close to valuation.

The world’s most valuable publicly traded company, Apple ($ 2.98 trillion), is followed by Microsoft ($ 2.51 trillion), while Alphabet ranks third, with a market capitalization of $ 2 trillion.

However, NGRAVE noted that Bitcoin reached a market capitalization of $ 1 trillion much faster than the best. Specifically, it took Bitcoin just 12 years, half the time it took for Amazon, to reach the milestone.

Crypto vs major stocks (NGRAVE)
Crypto vs major stocks (NGRAVE)

CryptoSlate Newsletter

Featuring a roundup of the biggest daily stories in the world of cryptocurrencies, DeFi, NFT, and more.

Obtain a edge in the crypto asset market

Access more information and cryptographic context in each article as a paid member of CryptoSlate edge.

Chain analysis

Price snapshots

More context

Join now for $ 19 / month Explore all the benefits


Leave a Reply

Your email address will not be published. Required fields are marked *