JPMorgan: Ethereum’s Growth Potential Higher than Bitcoin

Ethereum is a more attractive investment than Bitcoin due to its lower sensitivity to macroeconomic factors. JPMorgan analysts reached this conclusion, The Independent reports.

According to experts’ calculations, since the start of the year Ethereum has risen sixfold, while Bitcoin has gained 96%.

As a result, the total market capitalization of the second-largest cryptocurrency has reached half that of the first.

The experts forecast a further rise in this ratio. The driver will be the continued development of the DeFi-sector and NFT, which rely on Ethereum’s underlying technology. Meanwhile, Bitcoin remains only a means of payment, as in El Salvador, and a store of value akin to gold, they added.

“Rising bond yields and the subsequent normalization of monetary policy are exerting downward pressure on Bitcoin as a digital analogue to gold, and on the precious metal itself. Because Ethereum derives its value from applications, it seems less susceptible to this trend,” the experts stressed.

Earlier, Goldman Sachs forecasted Ethereum to rise to $8,000 by the end of the year.

Earlier, Vitalik Buterin, founder of the second-largest cryptocurrency, acknowledged the superiority of his project over Bitcoin as a store of value.

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