Ethereum is outperforming bitcoin. Morgan Stanley thinks it knows why
PUBLISHED WED, JUN 16 20218:25 PM EDT
In 2021, bitcoin and ether have seen huge rallies. In April 2021, the cryptocurrency market topped $2 trillion in value for the first time.
Jaap Arriens | NurPhoto | Getty Images
has outperformed bitcoin
so far this year, and Morgan Stanley has given a number of reasons why.
The “alternative” crypto coin 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 falling back to around $30,000
, while ether peaked in May at around $4,000 and is now trading around $2,500.
It’s important to note that ether’s market cap is less than half that of bitcoin’s, but trading volumes for the smaller coin surged to $600 billion in May — 60% higher than bitcoin volumes, according to Morgan Stanley.
There are some key reasons for the outperformance of ether, according to the investment bank, which updated its views on crypto in a note last week.
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