Investment bank JPMorgan has published a report explaining why ether is outperforming bitcoin. Citing several key reasons, the firm concluded that “there is evidence of more resilient liquidity, less reliance on derivatives markets to transfer and warehouse risk, and more durable underlying demand base – for now at least.”
JPMorgan Says Ether Outperforms Bitcoin
JPMorgan published a report on Tuesday entitled “Why is ETH outperforming?” The analysts with the firm’s Fixed Income Strategy for the U.S. wrote:
In recent days, one of the more interesting developments in cryptocurrency markets has been the outperformance of ether (ETH) relative to other tokens.
Noting that bitcoin is “more of a crypto commodity than currency,” JPMorgan said that “ETH is the backbone of the crypto-native economy and therefore functions more as a medium of exchange.” The analysts then asserted that “To the extent owning a share of this potential activity is more valuable … ETH should outperform BTC over the long run.”