Bitcoin has been compared to stocks For quite some time and next, Ethereum will be attracting attention as the top traded asset. Crypto supporters have advocated that cryptocurrencies offer much better returns compared to stocks. How much truth there was in the idea was widely debated. That said, the Nasdaq recently named Ethereum as one of the top tradable assets alongside companies like BlackBerry.
Ethereum wins against top stocks
Ethereum was viewed by the Nasdaq as one of the key trading assets for the week ahead. The fact that this happened in the midst of strong price consolidation was quite intriguing. Ethereum traded between $ 3,300-3,000 for most of this month, but for the larger financial market players, that consolidation made Ethereum a better option.
Notably, ETH has hit higher lows since August 9th after the price began to consolidate, and this subtle pattern of the uptrend even during consolidation worked in favor of the top alt. For the week ahead in particular, traders were expected to turn to Ethereum in general as the asset improves its game not only in terms of ROIs but also in terms of risk aversion.
Lower risk and higher return
Ethereum’s Shape ratio along with the other top stocks for the week ahead, including BlackBerry, Lucid Motors, and Big Lots, looked pretty strong. BlackBerry secured a Sharpe ratio of 0.0207, which meant the company had returned 0.0207% of return per unit of standard deviation for the past three months. It was also rated as slightly risky versus other stocks. Ethereum, on the other hand, had shown resistance to high risk due to its recent consolidation.
Ethereum’s Sharpe Ratio was trading at 9.41 on August 20, the highest value recorded that year. At the time of writing, it had been down almost 50% and the value was 4.87. But even with the slump, it was way more than the stocks in the companies mentioned above. Additionally, Ethereum’s one-month ROI was 29.75% and its annual ROI was 701.32% at press time.
The top altcoin, making its way into the best-traded stocks in the larger market, paves the way for other altcoins in the mainstream market.