S&P 500 Valuation Hits Record High as Cryptocurrencies Remain Cheap

The S&P 500 index is trading at a price‑to‑earnings multiple of 40.6 and a price‑to‑sales multiple of 3.7, levels that historically have appeared only once before the dot‑com bubble burst. Analysts warn that such elevated valuations leave the market vulnerable to a sharp correction if corporate earnings growth slows, especially for AI‑focused stocks that are driving much of the optimism.

In contrast, major cryptocurrencies have seen price declines of more than 50 % over the past year, yet several of them are generating increasing protocol revenue. Data from DeFiLlama shows Ethereum’s quarterly revenue at $187 million and Solana’s at $264 million, up from under $1 million a year earlier. The divergence between high stock valuations and improving crypto fundamentals has led some commentators to suggest that crypto assets are relatively cheap compared with overvalued equities.