The major investment bank JPMorgan expressed their belief that Ethereum is going to keep outperforming the world’s number one crypto, while some are preparing headstones for bitcoin’s grave yet again.
The bank gave three reasons why ETH is outperforming bitcoin:
- More resilient liquidity: the liquidity shock seen last week originated in the derivatives market, leading to sizable liquidations, but it hit BTC harder than ETH;
- less reliance on derivatives markets to transfer and warehouse risk.
- more durable underlying demand base: as a consequence of high transaction fees, a higher proportion of ETH (11%) behave as if highly liquid than bitcoin (4%) over the past month; and connected to the second reason, it may be that the underlying base of long exposure in ETH is less reliant on leverage in the form of futures and swaps than BTC.