Recent findings from a Bybit research report highlight a notable trend among institutional investors, who are now showing a pronounced preference for Ether (ETH) over Bitcoin (BTC). Institutions have adjusted their crypto portfolios to heavily favor Ether, dedicating 80% of their crypto allocations to both Bitcoin and Ether, with Ether taking the lead. This shift is largely motivated by the potential of the anticipated Dencun upgrade, propelling Ether’s price above $3100 and marking a 33% increase year-to-date. The asset’s performance is notably superior to Bitcoin’s 20% rise and is driven by Ethereum’s transition to a deflationary model, diminished exchange reserves, and increased staking engagement.

Contrary to the December narrative, when Bitcoin led the institutional interest, Ether’s ascending trajectory is backed by its thriving DeFi ecosystem and layer-2 solutions, as analyzed by Bernstein experts. This investor confidence shift from Bitcoin to Ether underscores the strategic reevaluation of crypto assets, favoring Ethereum’s technological promise and growth potential. Meanwhile, institutions are moving away from riskier altcoins, opting for stability and proven performance, further solidifying Ether’s dominance in the institutional investment landscape.

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