JPMorgan has turned bullish on Ethereum, saying that it should outstrip Bitcoin in the long run
American banking giant J.P. Morgan believes that Ethereum “should outperform” Bitcoin in the long run since it could capture a share of the growing crypto-native economy:
Bitcoin (BTC) is more of a crypto commodity than currency and competes with gold as a store of value, whereas ETH is the backbone of the crypto-native economy and therefore functions more as a medium of exchange.
However, it also mentions that the crypto king has weathered the decentralized finance boom, which has seemingly peaked based on the slowing growth of the total value locked in various projects.
Earlier today, Ethereum reached yet another all-time high, soaring to $2,735 on the Bitstamp exchange before giving up some gains. Meanwhile, Bitcoin’s rally has seemingly stalled, which translates into its shrinking market dominance that is currently sitting at multi-year lows.
J.P. Morgan claims Ether’s spot market depth has seen a quicker recovery from a recent sell-off compared to Bitcoin, which the bank attributes to better liquidity conditions on the futures market.
It singles out DeFi and other parts of the thriving Ethereum economy as the fundamental main tailwinds for Ether tokens:
In combination with the continued growth for DeFi and other components of the Ethereum-based economy, this suggests some technical but occasionally important bullish tailwinds versus bitcoin.