October 2, 2022

At present, Bitcoin is and has always been the topmost coin in the cryptocurrency market. The flagship cryptocurrency alone accounts for more than 50% of the total market cap of space. However, analysts from JPMorgan have claimed that Ethereum is going to overtake Bitcoin eventually. Such a theory is not issued in the market for the first time.

During the second quarter, crypto market experts started to talk about the ‘Flippening’ event that theorizes that Ethereum will overtake the digital asset market eventually. At the end of the year, JPMorgan analysts have reiterated the same opinion with a perspective from the traditional financial market. The report suggests that the monetary policy for Ethereum is superlative to Bitcoin.

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According to the technical observation of JPMorgan analysts, Ethereum can be considered a better asset class than Bitcoin due to its association with the DeFi market and high utility. The analyst recognized that Bitcoin acts as a hedge of value against inflation, but he added that the increase of high yields against bonds and increasing interests is going to weaken its position.

He claimed that just like the real gold market was affected by the arrival of inflation and higher yield options in the market, Bitcoin would not be able to defend its position as a digital gold in the market. He further claimed that DeFi market coins have started to offer the investors much more lucrative yields and returns of investment. He further explained that a majority of these DeFi tokens are based on Ethereum.

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Ethereum can Outperform Bitcoin

There are several market indices where Ethereum was able to supersede Bitcoin during the current year. JPMorgan analyst pointed out that during the current year, Ethereum prices increased by 500%, and Bitcoin was able to move up only by 96% in terms of price. There are also several instances when the daily trading volumes for Ethereum overtook Bitcoin.

The analyst further added that important fintech companies like VISA, MasterCard, PayPal, JPMorgan, and many others are left behind by Ethereum market cap, which makes up for half a trillion dollars at the current market value. In the end, the analyst claimed that during the next five years, Ethereum is very likely to assert its dominance in the cryptocurrency market.

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