The second largest cryptocurrency is the center of the digital finance world, thanks to the large number of smart contracts on Ethereum. At this point, Bitcoin and Ethereum have been compared many times. While Bitcoin maximalists continue to find Ethereum insufficient, Ethereum maximalists continue to find Bitcoin insufficient, came from JP Morgan analysts in a comment.
Analysts of JP Morgan, one of the largest banks in the USA, explained in their latest reports the main reasons why Ethereum is superior to Bitcoin.
In the report, chaired by analyst Nikolaos Pnigirtzoglou, it is stated that the fact that Ethereum is at the heart of decentralized finance adds a great advantage to it.
Stating that there are already 106 billion dollars of locked assets in Ethereum-based DeFi projects, analysts stated that the figure will grow much more with the inclusion of NFTs and stablecoins. According to JP Morgan analysts, Ethereum will have many more use cases than Bitcoin through smart contracts in the future.
Pointing out that Bitcoin grew due to the monetary policy of the USA, it was stated in the report that Bitcoin and gold could take a big hit with the return of monetary policy and the increase in bond yields.
At this point, it was stated that Ethereum may be less affected by environmental factors due to the transition process to POS.
Along with these considerations, the report emphasized that both Bitcoin and Ethereum were overvalued and traded above their real values.
*Not Investment Advice.