{"id":18434,"date":"2022-02-18T10:14:49","date_gmt":"2022-02-18T09:14:49","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=18434"},"modified":"2022-02-18T10:14:57","modified_gmt":"2022-02-18T09:14:57","slug":"as-new-competitors-appear-ethereums-supremacy-may-tail-off-says-morgan-stanley","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/as-new-competitors-appear-ethereums-supremacy-may-tail-off-says-morgan-stanley\/","title":{"rendered":"As new competitors appear, Ethereum’s supremacy may tail off, says\u00a0 Morgan Stanley\u00a0"},"content":{"rendered":"\n

According to a new analysis from Morgan Stanley's Global Wealth Management<\/a> Investment Office, Ethereum's supremacy may wane if robust market competition emerges.<\/p>\n\n\n\n

\"As<\/figure>\n\n\n\n

Morgan Stanley's Report Findings<\/h2>\n\n\n\n

The report is titled “Cryptocurrency 201: What Is Ethereum\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>?” and it gives a full explanation of the ecosystem, as well as its benefits and drawbacks when compared to Bitcoin (BTC).<\/p>\n\n\n\n

“Ethereum confronts more competitive threats, scalability concerns, and complexity challenges than Bitcoin, in part because of its larger potential market.” Ether<\/a> is also more volatile than Bitcoin<\/a>, according to the analysis.<\/p>\n\n\n\n

Morgan Stanley has said that Ethereum's smart contract dominance could be lost to cheaper and quicker blockchains, a claim made by supporters of Ethereum's killer market, which includes networks like Cardano (ADA), Solana<\/a> (SOL), Polkadot<\/a> (DOT), and Tezos<\/a> (XTZ):<\/p>\n\n\n\n

\u201cEthereum faces more competition in the smart contract market than Bitcoin faces in the store-of-value market. Ethereum may lose smart contract platform market share to faster or cheaper alternatives.\u201d<\/p><\/blockquote>\n\n\n\n

Ethereum poses more investment risks<\/h2>\n\n\n\n

Ethereum<\/a>, according to the investment bank<\/a>, is a higher-risk investment than Bitcoin since it confronts more competition in the smart contract industry than “Bitcoin faces in the store-of-value market.”<\/p>\n\n\n\n

“To ‘use' Bitcoin<\/a>, which is similar to a decentralized savings account, fewer transactions per user are required. The demand for Ethereum is increasingly directly linked to transactions. As a result, scaling limits impact Ethereum demand more than they hurt Bitcoin demand, according to the analysis.<\/p>\n\n\n\n

Other worries highlighted regarding the network included the changing regulatory status of Ethereum-based apps like as Decentralized Finance<\/a> (DeFi) and nonfungible tokens<\/a> (NFTs), which may be subject to tighter laws in the future, resulting in lower demand for Ethereum transactions.<\/p>\n\n\n\n

The paper also emphasized Ethereum's centralization, noting that the majority of Ether's supply is held by a “very small number of accounts”:<\/p>\n\n\n\n

\u201cIt is less decentralized than Bitcoin<\/a>, with the top 100 addresses holding 39% of Ether, which compares to 14% for Bitcoin.\u201d<\/p><\/blockquote>\n\n\n\n

On the bullish side of the equation, the Morgan Stanley<\/a> report claimed that Ethereum has a higher market potential than Bitcoin, that it has deflationary characteristics thanks to its transaction-based burning mechanism, and that its performance will improve significantly once it switches to a proof-of-stake consensus mechanism:<\/p>\n\n\n\n

\u201cEthereum has a much bigger addressable market than Bitcoin and can therefore be worth more than Bitcoin, which is simply the market for store of value products like savings accounts and gold.\u201d<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

According to a new analysis from Morgan Stanley’s Global Wealth Management Investment Office, Ethereum’s supremacy may wane if robust market competition emerges. Morgan Stanley’s Report Findings The report is titled “Cryptocurrency 201: What Is Ethereum ?” and it gives a full explanation of the ecosystem, as well as its benefits and drawbacks when compared to […]<\/p>\n","protected":false},"author":13,"featured_media":18435,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[7027,5371,5555,7314,7315],"class_list":["post-18434","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bearish-market","tag-bitcoin-2","tag-ethereum-3","tag-investment-bank","tag-morgan-stanley-2"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/02\/image-245.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/18434","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=18434"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/18434\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/18435"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=18434"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=18434"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=18434"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}