JPMorgan believes Ether will continue to outperform Bitcoin
U.S. megabank JPMorgan laid out the main reasons why Ethereum has an edge over Bitcoin in its recent report.
Analyst Nikolaos Panigirtzoglou notes that the second largest blockchain is at the forefront of decentralized finance.
According to data provided by DeFiPulse, the total value locked in Ethereum-based DeFi projects has now eclipsed a staggering $106 billion.
Coupled with non-fungible tokens and stablecoins, Ether offers more use cases than its bigger and older rival.
Panigirtzoglou points out that Bitcoin, which acts as a hedge against inflation, thrived in the low-interest-rate environment that exposed the risks of the financial system. However, now that central banks are starting to recall their immense support, Bitcoin could take a hit, along with gold, due to rising bond yields:
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.
Ether, according to Panigirtzoglou, is also less sensitive to environmental concerns due to its upcoming transition to proof of stake (PoS).
Both are overvalued
That being said, the U.S. banking giant believes that both of the leading cryptocurrencies are trading above their fair valuations.
On November 3, Ether hit its current all-time high of $ 4,674. Bitcoin, on the other hand, has been limited for weeks since it hit its current high of $ 67,276.
As reported by U.Today, JPMorgan recently calculated that the fair value of the largest cryptocurrency is $35,000.
