JPMorgan Predicts Ethereum Will Outperform Bitcoin
JPMorgan analysts predict that Ethereum will regain a bigger market share and perform better than Bitcoin in the cryptocurrency market. The Ethereum Improvement Proposal EIP-4844, also known as Proto-danksharding, is set to launch in H1 2024. It features a new transaction type called a blob-carrying transaction, involving the addition of a large piece of data known as a blob to regular transactions. However, the Ethereum Virtual Machine cannot directly access blob data; it can only interact with a commitment to the blob.
The introduction of blob-carrying transactions is expected to significantly enhance scalability and benefit Layer 2 networks like Arbitrum and Optimism. JPMorgan maintains a cautious stance on the broader crypto market for 2024, expressing concern about the slow progress of decentralized finance (DeFi) in integrating with traditional financial systems.
Venture capital funding for crypto saw a slight improvement in the last quarter of the year, with JPMorgan analysts viewing this as a tentative sign that could signal the end of the prolonged crypto winter. Technologies like AI, blockchain, and APIs are playing a critical role in improving cross-border payment flows, according to JPMorgan’s Naveen Mallela and Gayathri Vasudev. They emphasized the potential of digital currencies, including CBDCs, tokenized deposits, and stablecoins, driving innovation in cross-border payments.
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