Ethereum tokens are so incredibly liquid they’re handling a lot more trading volumes than the world’s most valuable company, Apple, which in many ways has transformed everything through its invention of smartphones.
According to market data by Tradingview, Apple handled just $10 million in trading volumes for the past 24 hours at the time of writing.
The world’s second most valuable company, Amazon, handled just $1.7 million. Google’s incredible market cap of almost a trillion is based on less than pocket change, $360,000.
You’d be forgiven to ask if this is a joke. How is Berkshire Hathaway, for example, at a price of $325,415, based on just 44 trades? 44 trades that give them a market cap of half a trillion.
The trading volumes for all of them are so incredibly low when you come from the crypto space that you suddenly start understanding why the Securities and Exchanges Commission (SEC) keeps going on about manipulation.
In such incredibly illiquid markets, where pocket change can move the price by the hundreds, manipulation would be a child’s play. In contrast, these are the trading volumes for ethereum based tokens:
As can be seen above, OmiseGo’s trading volumes are 10% of its market cap, with such trading volumes being nearly five times more than Apple’s, which is valued at above a trillion dollars.
The second biggest ethereum token by market cap, 0x, has nearly as much trading volumes as Apple, and a lot more than any of the other top stocks.
The trading volumes of top cryptos run in the billions, with trading volumes in the hundreds of thousands of dollars reserved more for third and fourth grade digital assets.
Some of this utterly astonishing discrepancy can partially be explained by some exchanges faking volumes or incentivizing trades as that old 20th century legacy finance paper, Bloomberg, says in a somewhat biased article which doesn’t quite balance their reporting by mentioning non-fake volumes.
But even if we ignore such fake volumes, a significant discrepancy is shown. Here is, for example, the regulated Silicon Valley based former YCombinator alumni, Coinbase:
As can be seen, the top cryptos are handling multitudes more in trading volumes than the world’s top stocks, and that’s on just one exchange.
Unlike stocks, which have to trade on just one exchange and everyone has to go there, cryptos currently trade on 204 exchanges across the globe, 24/7, with some of the exchanges being code based and decentralized, running on little else than smart contracts.
Moreover, you can not buy less than one stock share without going through convoluted means, while cryptos are easily divisible, with one bitcoin or eth easily purchasable at 1/10th or 1/1000th.
In addition, to buy stocks you have to go through somewhat painful processes that are more familiar to our grandfathers than this digital age. That’s to buy stocks through a third party. To actually get your hands on a stock certificate is a mission.
All these factors combine to make stocks very illiquid, appear outdated, and appear like a specialized thing for Wall Street and financiers.
An old boys club, a walled playground for the rich, something not for an ordinary person who culturally feels he/she has to stick to a savings account and near zero interest rates rather than invest in value creation.
Cryptos, on the other hand, are stupendously more accessible, far more global, a lot more open, incredibly liquid, easily transferable, and as convenient as one click, with no walls here, but a flat egalitarian world.
Thus it is no wonder that this simple objective comparison shows some astonishing divergence. Yet that the difference is so big is surprising, and shows by itself just how much of an upgrade cryptos are to the way things were.