Leading multinational investment bank JPMorgan has claimed that institutional investors are preferring Ethereum (ETH) more compared to Bitcoin (BTC).
In a recent note, analysts at the major financial services firm JPMorgan have stated that Ethereum (ETH) is seeing “much healthier” institutional demand compared to Bitcoin (BTC).
For instance, Bitcoin futures offered by the CME Group have come to a steady decline since August while the second-largest cryptocurrency, Ethereum (ETH) has seen a sharp interest in the same time period.
Despite the increased demand, JPMorgan’s crypto expert Nikolaos Panigirtzoglou has recently claimed that Ethereum should be 55% lower as it's facing growing competition from blockchains such as Solana and Cardano.
"We look at the hashrate and the number of unique addresses to try to understand the value for ethereum. We're struggling to go above $1,500. There is a question mark here. The current price is expressing an exponential increase in usage and traffic that might not materialise."
He said that Ethereum's key selling point is that developers can build decentralized apps and smart contracts upon it "can easily be replicated by other networks" and that "it's not unique."
The crypto market has recovered this week with altcoin leading the market rally by adding $100 billion. Ethereum (ETH) has shot up by 10% and moved past $3,100 levels and is currently trading at $3,129 at the time of writing.
Recently, crypto analytics firm Santiment reported, the ETH supply at the exchange increased minorly during the recent downtrend while the overall exchange supply still remains low.
At the same time, the 7-day MVRV ratio for Ethereum shows that the short-term holders are at loss but the digital asset is currently in the undervalued zone.
"ETH’s Network Growth has been stagnant for the past few months even after the price bottomed out. Price continued to grow but Network Participants continue to just range, this deviation is generally not a healthy sign"