Three Reasons why Ethereum is Performing Better Than Bitcoin

On April 27, some financial analysts of the banking JPMorgan aired why they think Ethereum has been performing better than Bitcoin in recent times. Since the start of this month, Ether has gained 45 percent in its value. Bitcoin on the other hand is far from this, with an aggregate loss of 9 percent since the beginning of April.

JPMorgan highlighted the fact that while the performance of both assets are always compared, they are largely different. Bitcoin serves as a store of value to overcome inflation, Ethereum on the other hand is much more than that. Ethereum is a technology and the foundation of most of the crypto ecosystem.

Three Reasons Why Ethereum is Doing Better

  • According to a Business insider report, JPMorgan analysts believe that ETH will outperform Bitcoin in the long run. To back up this point, it was mentioned that Ether traders have more frequently been able to withstand liquidity shock. The last market correction which saw Bitcoin dip by 27 percent led to the liquidity of Bitcoin valued at billions of dollars. This was not the same for Ethereum.
  • Another reason is that more traders and investors are now turning to ETH given that it has a higher potential to make profits over time. Large institutions that have been solely focused on Bitcoin in the past have shown more interest in Ether in recent times.
  • The Ethereum network, when compared to the Bitcoin network executes transactions quicker. Despite the large volume of transactions carried out daily on the Ethereum blockchain, it has proved to be swift, reliable and secure.

In the last 24 hours, ETH reached a new all-time high. It currently trades around the $2700 region and has had a weekly turnover of 15 percent. Bitcoin on the other hand has a weekly turnover of just 0.2 percent and its current price is 16 percent away from its all-time high. 

Views and opinions expressed are solely those of the author and not of The DeChained or any affiliated party. Views or opinions expressed in this article (or any article on the website) are not financial advice. Articles are for informational purposes only. The author and The DeChained may hold positions in assets discussed in this or other articles.
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