Ethereum Set to Shine in 2024, Outpacing Bitcoin as Scalability Boost Looms, Says JPMorgan

In a move that could shake up the cryptocurrency landscape in 2024, financial giant JPMorgan is predicting a significant shift in power, with Ethereum taking center stage against its long-standing rival, Bitcoin. While the overall outlook for crypto remains cautious, JPMorgan analysts believe Ethereum’s upcoming technological upgrade, Protodanksharding, will be the key factor driving its outperformance.

“We believe that next year Ethereum will reassert itself and recapture market share within the crypto ecosystem,” stated Nikolaos Panigirtzoglou, a managing director at JPMorgan, in a report issued on December 13th.

This bullish prediction for Ethereum stems from the anticipated launch of EIP-4844, also known as Protodanksharding, in the first half of 2024. This crucial upgrade is a stepping stone towards full Danksharding implementation, aiming to dramatically increase the Ethereum blockchain’s scalability by potentially handling up to 100,000 transactions per second.

JPMorgan, however, maintains a cautious stance on the broader crypto market, citing “excessive optimism” surrounding the potential approval of a spot Bitcoin ETF in the U.S. The analysts believe this euphoria has already factored into Bitcoin’s current price, leaving little room for explosive gains in 2024. Additionally, the anticipated Bitcoin halving event, which reduces the number of newly minted bitcoins, is also considered mostly priced in, further dampening expectations.

Despite the overall cautious outlook, JPMorgan sees promise in the emergence of new DeFi chains like Aptos, SUI, and Pulsechain. These platforms potentially offer faster transaction speeds and lower fees compared to Ethereum, posing both a challenge and an opportunity for the established leader.

While JPMorgan’s predictions should be treated with caution as any market forecasts, the anticipated Ethereum upgrade and the rise of new DeFi competitors undoubtedly add intriguing layers to the 2024 crypto narrative. With scalability woes potentially addressed and fresh competition on the horizon, Ethereum’s position as the leading smart contract platform could be significantly solidified, while Bitcoin faces the challenge of proving its value beyond simple store-of-value status. The coming year promises to be a captivating one for the ever-evolving crypto landscape. Read Similar Story

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