Ethereum is a better bet than bitcoin, according to JPMorgan

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The price of Ethereum has risen by more than 500% in 2021 (Getty Images)

Ethereum might be a better bet for investors than bitcoin, according to US banking giant JPMorgan Chase.

The price of the world’s second most valuable cryptocurrency has risen by over 500% in 2021, compared to a 96% increase for BTC, and now has a market capitalization roughly half that of bitcoin.

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One of the reasons investors trust Ethereum (ether) over bitcoin is the utility its underlying technology offers, according to a recent research note from JPMorgan.

It has previously played a leading role in the emerging decentralized finance (DeFi) industry, as well as a platform for non-fungible tokens (NFT).

Rather, bitcoin is mainly used as an everyday currency, like in El Salvador, or as a store of value similar to gold.

“Rising bond yields and the eventual normalization of monetary policy are putting downward pressure on bitcoin as a form of digital gold, in the same way that higher real yields have put downward pressure on bitcoin. traditional gold, ”the JPMorgan report said.

“Ethereum deriving its value from its applications, ranging from DeFi and games to NFTs and stablecoins, it seems less susceptible than bitcoin to higher real returns. “

A recent survey by uk.investing.com found that 52% of investors plan to invest in Ethereum in the remaining weeks of 2021, compared to 48% who intend to buy bitcoin.

“Many crypto investors have become more optimistic about Ethereum over the past year thanks to its increased involvement in DeFi projects and NFTs,” said Jesse Cohen, senior analyst at uk.investing.com.

“With the price still below the $ 5,000 level, many expect the price of ETH to double in 2022. That said, bitcoin shows no signs of slowing down, with mainstream adoption likely to gain momentum in the coming year. “

Last month, Ethereum topped the value of JPMorgan Chase for the first time and is currently the 15th most valuable asset in the world with a market cap of over half a trillion dollars, which is $ 10 billion more than that of JPMorgan.

The story continues

Data from global asset aggregator CompaniesMarketCap shows that Ethereum is also ahead of payment giants Matercard, PayPal and Visa.

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