Global investment giant JPMorgan revealed in its latest report the main reasons why Ethereum, the largest altcoin project, has an advantage over Bitcoin. Company analyst Nikolaos Panigirtzoglou shares market data. JPMorgan also calculates the real value for Bitcoin at $35,000. Here are the things that can be excluded from the report…
Altcoin giant owns NFT and stablecoin pools
Analyst Nikolaos Panigirtzoglou states that the second largest cryptocurrency is at the forefront of blockchains. According to data provided by DeFiPulse, the total value (TVL) locked in Ethereum-based DeFi projects has now eclipsed a staggering $106 billion. Combined with NFTs and stablecoins, Ethereum has more use cases than its larger and older competitor. Therefore, Panigirtzoglou points out that Bitcoin, which acts as a hedge against inflation, thrives in a low interest environment that exposes the risks of the financial system. Apart from that, Bitcoin could take a hit with the precious metal gold due to rising bond yields as central banks start to turn away their massive support. Panigirtzoglou says this about it:
The rise in bond yields and the eventual normalization of monetary policy are putting downward pressure on Bitcoin as a form of digital gold, while higher real returns are putting downward pressure on traditional gold.
According to Panigirtzoglou, Ethereum is also less susceptible to environmental concerns due to the PoS transition. But on the other hand, both cryptocurrencies are said to be overvalued. Here are the reasons…
JPMorgan: Both are overvalued!
However, the US banking giant believes that both of the leading cryptocurrencies are trading above their fair values. On November 3, Ethereum reached its current ATH level of $4,674. Bitcoin, on the other hand, has been range-bound for weeks since reaching its current high of $67,276. cryptocoin.com As I reported, JPMorgan recently calculated the fair value for Bitcoin at $35,000.
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