JPMorgan has been optimistic about Ethereum, stating that it should outperform Bitcoin over the long term
American banking giant JP Morgan believes Ethereum should “outperform” Bitcoin in the long run as it could conquer part of the growing crypto-indigenous economy:
Bitcoin (BTC) is more of a crypto commodity than a currency and competes with gold as a store of value, while ETH is the backbone of the crypto-indigenous economy and therefore acts more as a medium of exchange.
However, it is also mentioned that the crypto king has weathered the decentralized financial boom, which appears to have peaked due to the slowed growth in total value locked in various projects.
Earlier today, Ethereum hit another all-time high, rising to $ 2,735 on the Bitstamp exchange before giving up some gains. In the meantime, Bitcoin’s rally appears to have stalled, which is reflected in a shrinking market dominance that is currently at multi-year lows.
JP Morgan claims that Ether’s spot market depth has recovered faster from a recent sell-off compared to Bitcoin, which the bank attributes to better liquidity conditions on the futures market.
DeFi and other parts of the thriving Ethereum economy are highlighted as the main fundamental wind for Ether tokens:
Combined with the continued growth of DeFi and other components of the Ethereum-based economy, this suggests some technical, but occasionally important, bullish tailwinds against Bitcoin.