JPMorgan Lists Ethereum As A Better Investment Than Bitcoin

JPMorgan believes that Ethereum is an unstoppable force and has endorsed it. Although Ethereum is now the best performing cryptocurrency, it still trails Bitcoin in terms of performance. But history shows that Bitcoin could be losing its lead.

JPMorgan analysts recently published a report about cryptocurrencies and the potential of them. The note acknowledges the potential of Bitcoin but also places Ethereum in the lead for the next few years. Both assets are useful, according to the report. Ethereum, while Bitcoin has been proven to be a good option for its monetary policy is even more effective.

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Invest In Ethereum

JPMorgan’s note explained how Etheruem might prove to be a better investment than Bitcoin over the long term. Although Bitcoin remains the most valued cryptocurrency, Ethereum may end up being more popular due to rising interest rates.

“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,” said the analysts.

Ethereum price chart from

ETH gains more than $4,300| Source: ETHUSD on

Because interest rates and inflation rates are rising, investors will be more inclined to decentralized finance protocols (DeFi), which have more appealing interest rates than traditional finance. The majority of these DeFi protocol protocols use the Ethereum blockchain. This will drive greater adoption and give it more potential to grow than Bitcoin.

JPMorgan points out the NFT, stable coins, and gaming segments of the market. This makes it a “safer” bet than Bitcoin when it comes to investing in cryptocurrencies, which are infamous for their volatility. The note states that interest rates will rise and its utility should allow it to maintain its value.

“With Ethereum deriving its value from its applications, ranging from DeFi to gaming to NFTs and stablecoins, it appears less susceptible than bitcoin to higher real yields.”

Outperformance for the Future

JPMorgan, a world-leading bank, also suggested that Ethereum might be a more attractive investment choice than Bitcoin. The altcoin’s performance year over year has been one of the reasons. If both digital assets can be compared side-by side, 2021’s numbers will show that there is a large gap in performance.

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Ethereum has grown more than 500% in the year compared to Bitcoin’s 96%. This asset could surpass Bitcoin’s market capitalization in five years, while yielding higher returns for investors if it continues to grow at this pace.

Ethereum’s market capitalization has nearly doubled in five years. The digital asset, which now stands at more than half a billion dollars, has surpassed JPMorgan, Visa and MasterCard to take the 15th place as most valuable asset.

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