Ethereum Could Have Larger Market Cap Than Bitcoin | CryptoGazette
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There are all kinds of optimistic predictions about the price of the most important digital assets these days, and Ethereum is the star of the moment. It’s been revealed that the second coin in terms of the market cap could have a larger market cap compared to Bitcoin.
According to the latest reports, there is an analyst from banking giant Morgan Stanley says that Ethereum (ETH) could ultimately have a larger market than Bitcoin (BTC).
According to a report that has been revealed by Barron’s, Morgan Stanley strategist Denny Galindo addressed the fact that Ethereum is distinguishable enough from other crypto assets that it can be considered as a separate investment from Bitcoin.
Barron’s says the report highlights how Ethereum, not Bitcoin, is now associated with more economic activities than just payments or store of value.
It’s important to note the fact that these include non-fungible tokens (NFTs) and decentralized applications (DApps).
ETH’s market cap is larger than ETHs
Galindo also explained the fact that Ethereum’s various use cases could ultimately make ETH’s market larger than Bitcoin’s.
“In reflecting on the question, ‘Can Ethereum fit in a portfolio,’ Galindo simply itemizes the cases for and against. Ethereum, by making a big market for DApps, has more potential utility, and therefore a potentially bigger market, than Bitcoin.”
Galindo’s report also made sure to explain that Ethereum may be integrating with traditional financial markets.
The notes also revealed how ETH’s correlation with the stock market is nearly double that of BTC.
“While Ethereum and Bitcoin have had a 0.70 correlation to one another since December 2018, Ethereum has been nearly twice as correlated to the S&P 500, at 0.26, versus 0.14 for Bitcoin… If these correlations hold, replacing some Bitcoin exposure with Ether might actually make a portfolio more correlated to equities.”
At the moment of writing this article, ETH is trading in the red, and the coin is priced at $2,850.
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