Bitcoin continues to be the pinnacle of decentralization in the crypto industry. Morgan Stanley, a multinational banking and investment giant, is the latest to affirm this. Morgan Stanley stated that Bitcoin is more decentralized than Ethereum.
Morgan Stanley names the cons of Ethereum
In an educational primer authored by Denny Galindo, an investment strategist at Morgan Stanley Wealth Management, the banking giant made several criticisms of Ethereum, the second-largest cryptocurrency by market cap.
Barons noted that Morgan Stanley noted that while the top 100 wallets held 39% of the circulating supply of Ethereum, the corresponding figure for Bitcoin was 14%.
High concentration in the hands of a few entities is not the only issue the report raised against Ethereum. It notes that the network still does not have regulatory clarity and is tackling network congestion.
Morgan Stanley also maintained that in price volatility, Bitcoin had proven more stable than Ether. In addition, the report notes that Ether had shown more correlation to equities.
Trending Stories
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, stated the report.
Ether is still an attractive addition to portfolios
Morgan Stanley’s criticisms of Ethereum have long been held as valid by the crypto community. It has been at the top of reasons for the emergence of “Ethereum killers” such as Cardano, and Solana among others.
Regardless, the case for investing in Ether (ETH) is very strong, the report notes, while not giving investment advice.
Galindo points out that the Ethereum blockchain continues to support a lion’s share of the decentralized finance (DeFi) and Non-Fungible Tokens (NFTs) market.
DeFi and NFTs give Ether use cases that will ensure its continued adoption and make it an attractive addition to some portfolios, the educative report informed.
The banking giant was also positive for the Ethereum blockchain’s planned migration to proof of stake that was likely to make Ether more scarce by making issuance deflationary.
- Elrond Price Jumps By 9% Over This Announcement
- XRP Holding Better Than Most Altcoins, Here’s Why
- Breaking: Polygon, Major Blockchains Hit With Network Attack
- New Crypto Rules In Europe: A Global Standard For Regulation?
- Third Biggest Whale Adds 1,416 Bitcoins In Last 2 Days; Will This Pump BTC?
- ‘Big Short’ Michael Burry Says Bitcoin Crash Is Only Halfway Through
- These Whales Scoop $850 mln Worth FTX Tokens Ahead Of BlockFi Deal
- Breaking: El Salvador Buys 80 Bitcoin (BTC), Here’s How Prices Reacted
- U.S. DoJ Slaps Charges Against Promoters of Baller Ape Club NFT In Rug Pull Scam
- Canada-based Ledn Challenges FTX’s Bid of BlockFi Acquisition With Better Proposal
- Polygon Price Analysis: V-top Reversal may Direct MATIC to $0.31 Support
- ETH Price Analysis: Is Ethereum Dropping To Three Digits?
- Bitcoin Price Analysis- BTC on Losing Streak Nearing $17800; Will it Hold?
- NEAR Price Analysis: Falling Prices Eye $3 Breakdown; Should Coin Holders Worry?
- SHIB Price Analysis: Sustained Selling may Lead $SHIB to $0.0000074?
- Sandbox Price Analysis: Crashing SAND Prices Warns 25% Downfall
- Solana Price Analysis: $36 Breakdown Teases SOL Price to Revisit $26
- Chainlink Price Analysis: Wedge Pattern could Lead LINK price below to $5
- AAVE Price Analysis: Buyers Need $76.6 Breakout to Trigger Bullish Recovery
- Apecoin Price Analysis: Rising APE Price Knockout Another Barrier; is $6 Next?
