Ethereum hits its highest record on Thursday. On the other hand, Bitcoin, the all-time leading cryptocurrency, remains steady, struggling to climb new heights. According to Coindesk firm, Ethereum prices set a new record of over $2,700 in the past 24 hours. Bitcoin holds its highest, hovering around $54,000. Coindesk report also indicated that other virtual coins such as Bitcoin Cash, XRP, and Stellar are taking advantage of Ethereum’s success.
Why is Ethereum taking the financial markets by storm? Well, the European Investment Bank is the reason behind this overwhelming crypto rise. That is after the institution issued a 100m pound digital bond on the Ethereum blockchain. The European Bank also collaborated with Societe General, Santander, and Goldman Sachs. Is the currency attracting financial institutions? That is among the current market speculations.
Ethereum already gained mainstream popularity as NFTs or non-fungible tokens, distinctively supported on its Blockchain. What is an NTF? It is a specific digital token capable of turning any item associated with the digital industry. It can turn things like Gifs, videos, and tweets into collectible assets. Similar to cryptocurrencies like Bitcoin, you can buy and sell non-fungible tokens through the blockchain. NTFs encrypt the initiator’s mark on the blockchain for credibility verification.
Prominent executives like filmmaker Kevin Smith, Elon Musk, Jack Dorsey, Boy George, Peyton Manning, and brands such as Taco Bell, Pizza Hut, Charmin, Pringles, and Funko are now shifting attention to NFTs.
JP Morgan analysts issued a note on Thursday, explaining to investors why Ethereum is outperforming in recent times. They concluded that Ethereum and Bitcoin suffered from ‘comparable liquidity shock’ earlier in April. That influenced comparable asset delivery in the following days. However, the bank suggests that Ethereum markets have recovered quicker compared to Bitcoin. Moreover, they pointed out that the Ethereum blockchain will have a high turnover. That means that the noticeable fluctuations on the tokens may be highly liquid. That will prevent the futures liquidations’ impact.
The analysts added that the Ethereum valuations might be less reliable when it comes to levered demand than Bitcoin. JP Morgan also suggested that Bitcoin sounds more like a cryptocurrency commodity than a currency, competing with gold. Ethereum, on the other side, holds the crypto-native economy, functioning as an intermediate of exchange.
Comment your views about the competition between Ethereum and Bitcoin.