Ethereum outperforms bitcoin. Morgan Stanley thinks she knows why
In 2021, bitcoin and ether saw huge rallies. In April 2021, the cryptocurrency market exceeded $ 2 trillion for the first time.
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Ethereum cryptocurrency has outperformed bitcoin so far this year, and Morgan Stanley has given a number of reasons.
The “alternative” cryptocurrency is up around 240% this year, while the world’s best-known cryptocurrency is up less than 38%.
It’s been a volatile few months in the crypto world, with bitcoin’s value peaking in April at around $ 65,000 before dropping back to around $ 30,000, while ether peaked in May at around $ 4,000 and is now trading around $ 2,500.
Ether is considered an alternative to bitcoin. Fans love him for a number of reasons including the fact that it underlies many other cryptocurrencies, but it has not yet been adopted by private institutions like bitcoin has.
Importantly, ether’s market cap is less than half that of bitcoin, but trading volumes for the smallest coin hit $ 600 billion in May, 60% more than volumes. bitcoin, according to Morgan Stanley.
Ether’s outperformance has several main reasons, according to the investment bank, which updated its take on crypto in a memo last week.