According to CoinMarketCap data, Ether is up over 63% over Bitcoin, rising from 0.030343 BTC per ETH to 0.04957. In terms of dollar value, Ethereum’s value has risen more than 62%, reaching its current value of over $ 2,767, while Bitcoin’s value has risen by just over 1%, reaching its current price of over $ 53,475.
JPMorgan analysts believe that the reason Ether is growing faster than Bitcoin is because, while Bitcoin is more of a commodity that competes with gold as a store of value than currency, Ether is a thorn, the backbone of cryptoeconomics and a medium of exchange.
The bank’s analysis also points to a recent cryptocurrency liquidity shock that hit bitcoin harder. “This liquidity shock originated in the derivatives market, resulting in significant liquidations. The effect was arguably more significant for bitcoin futures, where liquidation of long positions after this event is 23% of expected open interest; However, Ether should keep up with 17% of net long positions liquidated in the same period. “, Indicates a note.
Ethereum has also experienced a sharper recovery than Bitcoin, with some exchanges reaching higher levels of liquidity than was reported prior to the recent liquidity shock.
The second largest cryptocurrency is also less dependent on derivatives than Bitcoin, which means that “underlying long aging [à l’éther] less dependent on leverage“That reduces the urgency of the liquidity shock.
The analysis also explains that the Ethereum network processes more transactions than Bitcoin, in part due to its ecosystem of financial applications and the growth of NTF.
JPMorgan believes this has serious implications for the coin’s value.
“As a result, most Ether tokens behave as if they were very liquid. In a market where cash turnover is significantly higher, it is likely that the underlying long-term position is less dependent on leverage in the form of futures and swaps.“