JPMorgan Chase, the multinational investment bank, has come out in support of Ethereum, the second-biggest cryptocurrency, which is often rivaled with Bitcoin. As per the bank, Ethereum is a much better investment than Bitcoin, whose market capitalization exceeds $1 trillion.
JPMorgan claims that Ethereum offers better utility
According to a recent statement, JPMorgan sided with Ethereum over Bitcoin, claiming that the world’s second-biggest cryptocurrency with more than $500 billion market cap offers more utility and insight to the blockchain technology than BTC itself.
Ethereum is already taking over the entire DeFi industry, providing increased exposure to smart contracts and NFTs as well. Supporting countless projects, the ETH network has seen a huge surge in activity in the recent period.
“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,” JPMorgan said.
ETH vs. BTC
In a single year, Ethereum grew by more than 500% as compared to Bitcoin’s 96%. Furthermore, the king of cryptocurrencies also lacked behind in terms of supporting DeFi, smart contracts, or NFTs, as JPMorgan pointed out. As per a recent survey that uk.investing.com conducted, as many as 52% of people would be good with holding ETH for the long term. On the contrary, only 48% agreed with holding BTC.
Furthermore, Ethereum is showing no signs of slowing down in terms of adoption as the ETH 2.0 launch nears. As ETH shifts from Proof-of-Work to Proof-of-Stake, investors aim that ETH will rise to double digits in the near future.
Last month, we also saw Ethereum overtake the market capitalization of JPMorgan and is currently the world’s 15th biggest asset. The half-trillion market cap of the cryptocurrency shows its promising future.
In addition to being $10 billion ahead in the market cap of JPMorgan, Ethereum is also ahead of the world’s biggest payment services providers like PayPal, Visa, and even Mastercard.