The U.S. stock market has had a historically strong year over the past year. As of Christmas, the Nasdaq Composite Index was up 33% year-to-date. However, compared to the steady rise of the stock market, the performance of several leading cryptocurrencies has far exceeded the returns of many technology stocks during the same period.

Even when traditional stocks doubled or even tripled their annual returns, the returns of these crypto assets easily exceeded 100%. More notably, two of these cryptocurrencies were successfully listed and became ETF targets on Wall Street, which makes their risks much lower than those of traditional digital currency trading platforms.

This does not mean that purchasing these crypto assets is without risk, just as investing in Apple or Amazon stocks isn't. Investors are surprised by the rise in these currency prices, questioning whether such market performance can continue indefinitely. However, this is currently in the bullish phase of a cycle of multiple booms and busts in cryptocurrency. As demand continues to increase, market prices may adjust again in the coming months until demand is digested.

How the four major cryptocurrencies beat the Nasdaq?

As of December 26, 2024, the Nasdaq Composite Index rose by 33%. The performances of the following four cryptocurrencies are:

  • Bitcoin (BTC): +126%

  • Ethereum (ETH): +49%

  • Solana (SOL): +75%

  • XRP: +247%

The increase in these crypto assets in just one year far exceeds that of many tech stocks in traditional stock markets, even outperforming the strong performance of the Nasdaq.

1. Bitcoin (BTC) - Annual increase: +126%

Bitcoin, as the earliest cryptocurrency, has almost led the rise of the entire digital currency industry. In 2024, Bitcoin's performance exceeded 126%. In the U.S. stock market, Bitcoin has almost become 'digital gold,' attracting a large number of investors due to its unique supply mechanism and decentralized properties.

The reasons Bitcoin was able to outperform the Nasdaq in 2024 are mainly threefold:

  • In January 2024, the U.S. Securities and Exchange Commission approved a Bitcoin ETF, further enhancing Bitcoin's recognition on Wall Street.

  • In April 2024, Bitcoin's halving event attracted widespread market attention. Historically, halving events are often accompanied by a rise in Bitcoin's price.

  • News of former President Trump's re-election also brought expected optimism to the market, further driving Bitcoin's upward trend.

2. Ethereum (ETH) - Annual increase: +49%

Since its launch, Ethereum has been an innovator in blockchain technology. As a decentralized smart contract platform, Ethereum not only supports digital currencies but also drives the revolution of decentralized finance (DeFi) and smart contracts.

Ethereum performed well this year, with its rise attributed to several factors:

  • In July 2024, the SEC approved the listing of an Ethereum ETF, attracting more compliant investors to the market.

  • The Federal Reserve's interest rate cuts provided support for Ethereum's price, allowing it to benefit in a low-interest-rate environment.

  • Combined with the market sentiment brought by Trump's re-election, the entire crypto market showed an upward trend.

3. Solana (SOL) - Annual increase: +75%

Solana, as a high-performance blockchain, draws on Ethereum's design philosophy, but its advantages lie in fast transaction speeds and low fees. Although Solana's market capitalization is still less than Ethereum's, it is quickly closing the gap, becoming an emerging force in the market.

Solana's strong performance is attributed to several factors:

  • Efficient network throughput and low transaction fees have allowed it to gradually secure a place in DeFi platforms.

  • The Federal Reserve's low interest rate policy further encouraged capital inflow into the cryptocurrency market.

  • Solana's unique technological advantages have allowed it to stand out in the highly competitive cryptocurrency market.

4. XRP - Annual increase: +247%

As a pioneer in cross-border payment solutions, Ripple's XRP token shone brightly in 2024. XRP's ability to outperform other cryptocurrencies is mainly due to several victories in its lawsuit with the U.S. Securities and Exchange Commission (SEC). The court's rulings provided strong support for XRP's value increase.

The reasons XRP surpassed the Nasdaq in 2024 include:

  • Ripple's victory in court, especially in the dispute with the SEC, greatly enhanced market confidence in its prospects.

  • The Federal Reserve's low interest rate policy and news of Trump's re-election boosted market sentiment, further providing upward momentum for XRP.

  • Ripple actively promotes business partnerships globally, which also supports the market value growth of XRP.

Conclusion

Whether it's Bitcoin, Ethereum, Solana, or XRP, they all exhibited extraordinary growth in 2024, successfully surpassing the Nasdaq index. This phenomenon indicates that cryptocurrencies are gradually becoming strong competitors in traditional financial markets.

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