Banking giant JPMorgan explained in its latest report the main reasons why Ethereum (ETH) is superior to Bitcoin (BTC).
Analyst Nikolaos Panigirtzoglou stated that the second largest blockchain is at the forefront of decentralized finance.
According to data provided by DeFiPulse, the total amount locked in Ethereum-based DeFi projects has surpassed $106 billion.
In the scenario where NFTs and stablecoins are also included, Ethereum has more uses than Bitcoin. For this reason, the analyst states that Ethereum is superior.
Panigirtzoglou emphasizes that Bitcoin, which acts as a hedge against inflation, thrives in a low-interest environment that exposes the risks of the financial system. However, Bitcoin could take a hit, along with gold, due to rising bond yields as central banks begin to withdraw their support.
“The increase in bond yields and the eventual normalization of monetary policy are putting downward pressure on Bitcoin. Likewise, there is a similar pressure on gold.”
Overrated
However, JPMorgan considers both cryptoassets to be overvalued.
Ethereum reached its ATH level of $4,674 on November 3. After reaching the $67,276 level, Bitcoin is hovering around $60 – $62k.
JPMorgan recently said that the real value of Bitcoin should be $35,000.
