The rise of Bitcoin and Ethereum has drawn comparisons to the “Magnificent Seven” tech stocks—Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Meta Platforms (META), Amazon (AMZN), NVIDIA (NVDA), and Tesla (TSLA). This analysis explores their market capitalization growth from 2019 to 2024, highlighting key trends and performance metrics.
The Magnificent Seven: A Market Dominance Phenomenon
Coined by Bank of America analyst Michael Hartnett in April 2023, the Magnificent Seven represents tech giants that have consolidated market power through acquisitions and scalable innovation. Collectively, they contributed 88% of year-to-date returns for shareholders in 2023.
Despite Tesla’s recent struggles, the group outperformed broader indices. The Roundhill Magnificent Seven ETF (MAGS) delivered a 35.8% return in 2024, dwarfing the S&P 500’s (SPX) 15.1%. These stocks now comprise 30% of the S&P 500, underscoring their dominance.
Have Cryptocurrencies Outperformed the Magnificent Seven?
While Bitcoin and Ethereum surpassed most Magnificent Seven stocks in growth, their 2019 market caps were significantly lower. Below is a five-year comparison (2019–2024):
| Asset | 2019 Market Cap | 2024 Market Cap | Growth Rate |
|---|---|---|---|
| Microsoft (MSFT) | $961.8B | $3.322T | 245.4% |
| Apple (AAPL) | $933.3B | $2.230T | 246.1% |
| NVIDIA (NVDA) | $105.4B | $3.039T | 2782.8% |
| Alphabet (GOOGL) | $818.4B | $2.258T | 175.9% |
| Amazon (AMZN) | $945.7B | $2.011T | 112.6% |
| Meta (META) | $541.7B | $1.279T | 136.1% |
| Tesla (TSLA) | $43.8B | $631.1B | 1340.8% |
| Bitcoin (BTC) | $103.9B | $1.250T | 1102.2% |
| Ethereum (ETH) | $18.1B | $421.0B | 2218.3% |
Key Takeaways:
- NVIDIA led with a 2782.8% surge, driven by AI and GPU demand.
- Ethereum’s 2218.3% growth outpaced Bitcoin’s 1102.2%, attributed to its lower starting cap and DeFi expansion.
- The Magnificent Seven’s combined cap grew 262.5% to $15.77T.
NVIDIA vs. Cryptocurrencies: A Standout Performer
NVIDIA was the only Magnificent Seven stock to outperform both Bitcoin and Ethereum, fueled by breakthroughs in AI infrastructure. Meanwhile, BTC and ETH now represent 66.9% of the total crypto market cap ($1.25T and $421B, respectively).
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Market Cap Dynamics: Tech Stocks vs. Crypto
As of June 2024, the combined cap of the Magnificent Seven, Bitcoin, and Ethereum reached $17.44T, with cryptocurrencies accounting for 9.6%. Ethereum’s growth trajectory was particularly notable, narrowing Bitcoin’s lead.
Volatility and Milestones
- 2020: PayPal’s crypto integration boosted adoption.
- 2022: Terra (LUNC) collapse triggered a market downturn.
- 2024: Bitcoin ETF approvals spurred a 50% rally in crypto valuations.
Methodology
Data sources:
– Magnificent Seven: YCharts.
– Bitcoin/Ethereum: CoinGecko.
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FAQ
1. Which asset grew the fastest between 2019 and 2024?
NVIDIA’s market cap surged 2782.8%, the highest among all assets analyzed.
2. How do Bitcoin and Ethereum’s growth rates compare?
Ethereum’s 2218.3% growth was 1.7x higher than Bitcoin’s 1102.2%, partly due to its smaller initial cap.
3. What drove NVIDIA’s exceptional performance?
AI innovation, gaming GPUs, and data center demand propelled its valuation.
4. Are cryptocurrencies riskier than Magnificent Seven stocks?
Yes, crypto markets face higher volatility due to regulatory uncertainty and speculative trading.
5. What was the impact of Bitcoin ETFs?
Approvals in January 2024 catalyzed a $600B+ inflow into crypto markets.
6. Will Ethereum overtake Bitcoin in market cap?
While unlikely soon, Ethereum’s DeFi and smart contract utility could narrow the gap.
Data as of June 28, 2024. For deeper insights, refer to CoinGecko’s full report.