JPMorgan Expects Ether to Outperform Bitcoin in 2024
JPMorgan analysts have made a bold prediction, stating that ether, the second largest cryptocurrency, will surpass bitcoin and other alternatives in 2024. The bank’s experts, led by Nikolaos Panigirtzoglou, believe that Ethereum will regain its position and “recapture market share within the crypto ecosystem.”
The main reason behind this forecast is the upcoming EIP-4844 upgrade, also known as Proto-Danksharding, which is expected to occur in the first half of 2024. This upgrade is anticipated to significantly enhance Ethereum’s network activity, ultimately resulting in its outperformance.
The Proto-Danksharding update aims to improve the functionality of the network by favoring the use of Ethereum rollups and decreasing their fees through the implementation of “data blob” transactions. This will contribute to a rollup-based scaling roadmap devised by Ethereum co-founder Vitalik Buterin.
A Different Outlook for Bitcoin
In contrast, JPMorgan argues that factors that may support bitcoin’s performance in the coming year, such as the halving event and the potential approval of a spot ETF in the U.S., are already priced into the market. The analysts state:
“Given the current ratio of the bitcoin price to production cost is around x2.0 at the moment, this would imply that the 2024 bitcoin halving event is largely in the price.”
These predictions from JPMorgan contradict the more optimistic outlook of other financial service companies. Bitwise expects bitcoin to reach a new all-time high (ATH) of $80,000, while Vaneck also predicts a significant increase to an undetermined ATH.
Hot Take: JPMorgan Anticipates Ether’s Rise in 2024
JPMorgan’s analysts foresee a promising future for ether, asserting that it will outperform bitcoin and other cryptocurrencies next year. Their optimism stems from the upcoming Proto-Danksharding upgrade, set to enhance Ethereum’s network activity and position it for success. While alternative predictions exist, JPMorgan believes that factors supporting bitcoin’s performance are already factored into the market. Regardless of the varying opinions, it will be interesting to observe the dynamic between these two leading cryptocurrencies in 2024.
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