According to Morgan Stanley analyst Denny Galindo, Ethereum (ETH) could outpace Bitcoin (BTC) by market cap. In his recent research report, Denny Galindo discusses how the leading altcoin project can do this.

Morgan Stanley strategist Denny Galindo argues that Ethereum is sufficiently different from other cryptocurrencies and is considered a separate investment from Bitcoin.

According to analysts at US newspaper Barron who reviewed Galindo's report, Galindo's statements reveal how Ethereum, instead of Bitcoin, is now linked to broader economic activities beyond just payments and storage, such as NFTs and decentralized applications (DApps).

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Barron analysts, who examined Galindo's report, include the following statements:

   “Galindo simply lists the pros and cons while pondering the question of ‘Can Ethereum fit in a portfolio?’ Ethereum has more potential benefits than Bitcoin, creating a huge market for DApps, and therefore a potentially larger market.”

According to Galindo's analysis, Ethereum could be merging with traditional financial markets, noting that ETH's stock market correlation is roughly twice that of BTC.

   “Since December 2018, Ethereum and Bitcoin have 0.70 connectivity, while Ethereum is almost twice as tied to the S&P 500 at 0.26 versus 0.14 for Bitcoin… potentially increasing a portfolio's stock correlation.”

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If the correlation value Galindo mentioned is close to 1, it indicates that the two cryptocurrencies are highly correlated. In his analysis, Galindo also states that he feels the cryptocurrency is permanent:

   “We make no recommendations on whether to buy or sell Ethereum… We do not expect cryptocurrencies to disappear anytime soon… The sooner we learn, the better we can see how cryptocurrencies might fit in certain conditions.”

Ethereum is priced at $2,958 at the time of writing. The 24-hour trading volume is $11,810,523,430. ETH price is up around 2.3% in the last 24 hours.