In recent Ethereum cryptocurrency news, investors should be looking closely at Ethereum, according to JPMorgan Chase. Currently, Ethereum is the second most valuable cryptocurrency in the world. However, in 2021 the price for the cryptocurrency rose by as much as 500%. In comparison, Bitcoin has only seen a rise in price of 96%. Now, Ethereum has a market cap that is close to half of the market cap of Bitcoin.
Claims from JPMorgan state that investors should put their faith in Ethereum as opposed to Bitcoin because of the utility, which is the underlying technology that it offers. Ethereum has already played a major role in the decentralized finance industry in addition to a platform for NFTs. On the other hand, Bitcoin acts more like an everyday currency or a value store like gold.
According to JPMorgan, “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.” Also in the statement, “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.”
Recently, Ethereum overtook JPMorgan Chase to become the 15th most valuable asset with over a half-trillion-dollar market cap in the world. This is the first time that this has occurred. Data also shows that it is ahead of Visa, Mastercard, and PayPal.