Crypto Valuations Look Cheap as Stocks Reach New Highs

The S&P 500 has reached an all-time high in valuation metrics. The cyclically adjusted Shiller price-to-earnings (P/E) multiple is 40.6, a level only seen once before - right before the dot-com bubble's collapse. Its price-to-sales (P/S) multiple of 3.7 is also at a record high.

Crypto assets, on the other hand, are experiencing a different trend. Despite falling prices over the last year, top revenue-generating coins like Ethereum, Solana, and Hyperliquid have seen their quarterly revenue increase significantly.

According to data from DeFiLlama, Ethereum's quarterly revenue rose from $187 million in Q2 2023 to $107 million in Q2 2026, while its price fell by 50%. Solana's quarterly revenue climbed from $264 million to $897,514 over the same period, despite a 58% price drop.

However, not all crypto assets have perfect value capture. Ethereum, for example, burns transaction fees but only returns some of the value to holders, with most of it flowing to apps and stakers instead.