Ethereum soars to all-time highs, attracting attention of JPMorgan
ETH, the second-largest cryptocurrency by market capitalization, soared to a new all-time high of $ 2,757. This event prompted traditional Wall Street firms to undertake investment research.
According to a report by JPMorgan research on why Ethereum is performing so well, the company’s analysts concluded that the price of cryptocurrency is less dependent on the demand from traders with leverage, as is the case with Bitcoin. This factor can contribute to further growth.
In early April, the Bitcoin and Ethereum markets went through a similar liquidity shock, which was subsequently triggered by a decline in leverage in certain derivative markets. However, the company reports that the depth of the ETH spot market recovered faster than Bitcoin.
ETH futures showed better liquidity conditions than BTC futures could offer. The amount of open positions allows us to speak with confidence about this. A significant share of Ethereum coins can boast of high liquidity, showing higher turnovers in their network. This fact also influences how much the liquidation of futures has diminished its influence.
A more robust application for ETH futures allowed for faster liquidity recovery compared to BTC. The DeFi sector continues to grow, as do other parts of the economy based on the Ethereum blockchain and its smart contracts. In addition, in all likelihood, Ethereum has technical advantages over Bitcoin and they are of high importance.
Despite the fact that Jamie Dimon, the CEO of JPMorgan, initially did not like cryptocurrency, the company is preparing to offer its private clients an actively managed bitcoin fund, as it became known at the beginning of the week.
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