- According to Morgan Stanley, ETH is less decentralized than Bitcoin.
- As per the research, Ethereum has a bigger market potential than Bitcoin.
According to a new report from Morgan Stanley Wealth Management, the decentralized finance (DeFi) and non-fungible token (NFT) categories are now led by Ethereum. Analysts anticipate that Ethereum’s market share will decline as other cryptocurrencies arise.
In recent research on Ethereum, Morgan Stanley noted that blockchain’s supremacy might be threatened by more market rivalry. A new analysis claims that the competitive, scalability, and complexity concerns Ethereum confronts are greater than what Bitcoin encounters. According to a statement made by the corporation, Ether is more volatile than Bitcoin.
Ethereum More Risky Investment Than Bitcoin
The smart contract market is becoming more competitive than the store-of-value market for Bitcoin, and this might cause Ethereum to lose some of its supremacy. Morgan Stanley has predicted that Ethereum would lose market share to cheaper and quicker smart contract platforms.
As a result, Morgan Stanley believes that Ether is a more risky investment than Bitcoin, which requires fewer transactions per user. Due to its reliance on transactions, Ethereum’s demand is likely to be affected more than Bitcoin’s because of the network’s scalability restrictions.
There is also a possibility that tougher regulations in the DeFi and NFT industry might diminish demand for Ethereum transactions. According to Morgan Stanley, ETH is less decentralized than Bitcoin, with the top 100 addresses controlling 39% of ETH, compared to only 14% for BTC.
Morgan Stanley’s research, on the other hand, said that Ethereum has a bigger market potential than Bitcoin because of its transaction-based burning mechanism, which is deflationary in nature. The Ethereum network’s performance may dramatically increase once the Ethereum network converts to a proof-of-stake consensus method.
