JPMorgan: Ethereum’s Growth Potential is Higher Than Bitcoin’s

News
Reading Time: < 1 minute

Ethereum is a more attractive investment object compared to the leading crypto due to its lower sensitivity to the influence of macroeconomic factors, JPMorgan experts have told The Independent.

Since the beginning of the year, the price of Ethereum has increased 6-fold, while Bitcoin has grown by 96%.

As a result, the total market value of the second largest crypto by capitalization has reached half that of the first.

Experts believe further growth in this ratio is on the way. The driver will be the continued growth of the DeFi sector and NFTs that are based on Ethereum’s underlying technology. At the same time, Bitcoin remains only a means of payment, as in El Salvador, and a store of value like gold, they have added.

Experts have highlighted:

“The rise in bond yields and the eventual normalization of monetary policy is putting downward pressure on bitcoin as a form of digital gold, the same way higher real yields have been putting downward pressure on traditional gold. With Ethereum deriving its value from its applications, ranging from DeFi to gaming to NFTs and stablecoins, it appears less susceptible than bitcoin to higher real yields.”

If you like our content and want to support us, please follow us on Twitter, Facebook and Instagram and don’t miss the latest news!