Ethereum will outperform Bitcoin, says JPMorgan
According to analysts of the bank, Ethereum has outpaced Bitcoin since early April, and they gave three reasons why digital currency would outperform Bitcoin in the long run.
In a note to investors published on Tuesday (27), analysts of US giant bank JPMorgan were extremely optimistic about the future of Ethereum, saying that the digital currency will surpass Bitcoin in the long term.
“Ethereum should outperform Bitcoin in the long run,” the bank said that there is a noting inherent difference between the two assets, Bitcoin has being a store of value and on the other hand Ethereum is considered the technology and the backbone of the entire cryptocurrency economy, working much more than just a medium of exchange.
The report was published after Ethereum hit a record price, exceeding the range of $ 2,700, while the Bitcoin struggled to surpass the US $ 55,000, which is $ 10,000 lower than its historical record.
Ethereum rose to record highs this week amid a wave of institutional interest and increased liquidity at derivatives brokerages.
According to analysts of the bank, Ethereum has outpaced Bitcoin since early April, and they gave three reasons why digital currency would outperform Bitcoin in the long run.
"Both Bitcoin and Ethereum experienced a liquidity shock earlier this month, which triggered a leverage reduction event for their respective derivatives markets in the following days." says the report.
Second, Ethereum's spot trading fee is much higher than Bitcoin's, which means that long Ethereum positions are more likely to be held in spot than in futures and perpetual contracts.
And finally, transaction activities on the Ethereum network showcase the richness of the platform, including the growing market for Decentralized Finance (DEFI) and NFTs.