JPMorgan Chase stated that Ethereum is overcoming Bitcoin and expects this trend to continue.
In a note to investors on April 27, analysts at U.S. bank JPMorgan appear to have become extremely optimistic about Ethereum, noting that it defeated Bitcoin in terms of earnings this year.
In April so far, Ethereum has made 45% to current levels, while Bitcoin has seen its market dominance drop.
JPMorgan pointed out that there is an inherent difference between the two assets, with BTC being a store of value and ETH being a technology and the backbone of the entire crypto-native economy, functioning as much more than a form of payment.
Ethereum defender Anthony Sassano agreed:
“Ethereum’s core value has been in motion for a long time.
Only now is the world finally waking up to him and accepting the inevitability of Ethereum.
Greetings to those who have had vision and conviction since the beginning – now you will reap the rewards. ”
According to a Business Insider report, JPM analysts stated:
The first reason cited was a liquidity shock that hit Bitcoin, but Ethereum was able to resist. Leveraged traders in the derivatives markets were liquidated and Bitcoin prices plummeted, resulting in a 27% correction. This involved the second reason, stating:
“In a market with significantly higher spot turnover, it is plausible that the underlying long exposure base [em ether] less dependent on leverage in the form of futures and swaps [do que bitcoin]”
Third, the Ethereum network has long been characterized by a higher rate of transactions on the public blockchain than on Bitcoin. This is probably due to increased activity in the DeFi market and other platforms, according to JP Morgan.
Bank strategists added that, as a result, a higher proportion of ETH behaves as if it were highly liquid compared to Bitcoin – 11% versus 4% by some estimates last month.
In other words, Ethereum does not suffer from the volatile price drops caused by over-leveraged positions and has managed to overcome Bitcoin as a result.
ETH price update
After its highest record of $ 2,700 yesterday, Ethereum reached another peak of $ 2,760 during trading in Asian markets on Thursday.
So far, ETH had retreated to $ 2,700 again, but it was still in a solid bullish trend that has seen the asset gain 14% since the same period last week.
Bitcoin, meanwhile, fell 2% on the day, reaching $ 53,730, after failing to break resistance in the $ 55,000 zone.