The bulls were back in charge on Sept. 9, sending the Ethereum price higher by more than 5% to $353 after falling from its September high of about $487. It wasn’t the only asset to enjoy a much-needed lift. Over on Wall Street, shares of Tesla (TSLA) also staged a comeback.
While what got each of them here is quite different, ETH and TSLA have both experienced a series of highs and lows of late. Now they are both trading at almost the same price, with ETH at $353 and TSLA at $366.
eToroX, the professional trading arm of eToro, picked up on it and published a poll on Twitter, asking followers which asset they’d prefer to buy and hold for a profit down the line. After more than 300 votes, Tesla had a slight lead, at 54% to 45%.
— eToroX (@eTorox) September 9, 2020
When it comes to market cap, however, TSLA more closely resembles the flagship cryptocurrency bitcoin. The electric vehicle maker’s market cap is currently at $341 billion compared to bitcoin’s $189 billion and Ethereum’s $39.7 billion.
ETH vs. TSLA
ETH has had a banner year as once again its network became the platform du jour for the latest crypto craze. This time, instead of ICOs, it’s DeFi, for better or for worse. The price has grown from $130 at the start of the year to a 2020 high of nearly $500.
Tesla stock, meanwhile, has defied gravity this year, buoyed by vehicle deliveries that blew estimates out of the water, leading Wall Street to lift their price targets. TSLA shares have gained more than 400% through early September. In August, Tesla announced a 5-for-1 stock split, sending investors scrambling to buy shares at a discount and making the ETH comparison possible.
On-chain market data site Santiment pointed out that there has been a flippening in the crypto space, one in which the market cap for ERC-20 tokens has “flippened the ETH market cap since the Black Thursday crypto dump” that happened in March. The flippening happened on Sept. 3, and according to Santiment it represents the “highest market cap differential of ERC-20 coins over ETH of all time.”
The ERC-20 market cap has '#flippened' the $ETH market cap since the Black Thursday #crypto dump. After first crossing in mid-March, it occurred again on Sep 3rd. This is currently the highest market cap differential of ERC-20 coins over $ETH of all time! https://t.co/9tAtfPe06d pic.twitter.com/vTH7mD6JWm
— Santiment (@santimentfeed) September 9, 2020
While it might not be the “flippening” that some in the Ethereum community had in mind, it’s no doubt a reflection of the total value locked in the DeFi market, which is currently over $7 billion, according to DeFi Pulse. Coins like YFI and COMP are currently on Santiment’s top-20 ERC-20 asset list.