Despite being apprehensive about the cryptocurrency markets in the upcoming year, JPMorgan anticipates that Ethereum will surpass Bitcoin and other digital currencies in 2024. According to JPMorgan analysts, ether is poised for a resurgence and a recapture of market share within the crypto ecosphere.
The primary driving force behind the growth is the anticipated Proto-danksharding, or EIP-4844 upgrade, which is scheduled for the first half of next year. The analysts believe that Proto-danksharding will play a substantial role in improving ether’s network activity, positioning it for superior performance.
Proto-danksharding is the first step toward the implementation of Danksharding, a more sophisticated kind of sharding intended to increase Ethereum’s efficiency. In contrast to the original sharding method, Danksharding avoids the laborious task of splitting Ethereum into several shard chains. Rather, it presents data blobs, which are transient data packets attached to blocks. The Ethereum virtual machine can access and store more data in these blobs than in blocks, but they are not kept indefinitely.
This update is especially helpful for layer 2 networks on Ethereum, such as Optimism and Arbitrum, because it offers more temporary data capacity to boost network throughput and lower transaction costs.
The analysts assert that factors perceived as bullish for Bitcoin in the coming year, such as potential spot ETF approvals and an impending halving, are already factored into the current market dynamics. Drawing comparisons to the 2020 halving, they suggest that a similar market price-to-production cost ratio adjustment may occur after the 2024 halving.
Addressing decentralized finance (defi), the analysts expressed disappointment in its struggle to integrate into the traditional financial system. They emphasized the necessity of bridging the gap between the crypto ecosystem and real-world applications for the broader adoption of blockchain technology in traditional finance.
Furthermore, they expressed reservations about the slow evolution of tokenization, labeling it as largely experimental and hindered by fragmentation, lack of cooperation and interoperability between platforms. The researchers highlighted delays in the introduction of central bank digital currencies by the European Central Bank and the Federal Reserve, coupled with a lack of regulations, as additional obstacles.
While the fourth quarter witnessed a modest improvement in venture capital funding in the cryptocurrency space compared to the rest of the year, analysts remain cautiously optimistic. They assert that if this positive trend continues into 2024, it would signify a substantial development and, in their opinion, mark the end of the cryptocurrency winter.
The overriding sentiment in these predictions is a positive one, and established companies such as Canaan Inc. (NASDAQ: CAN) can only hope that the tailwinds that manifested as 2023 progressed carry on into the coming year so that the industry puts the challenges of the recent upheavals behind it.
About CryptoCurrencyWire
CryptoCurrencyWire (“CCW”) is a specialized communications platform with a focus on blockchain and the cryptocurrency sector. It is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled recognition and brand awareness. CCW is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from CryptoCurrencyWire, text “CRYPTO” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.CryptoCurrencyWire.com
Please see full terms of use and disclaimers on the CryptoCurrencyWire website applicable to all content provided by CCW, wherever published or re-published: https://www.CryptoCurrencyWire.com/Disclaimer
CryptoCurrencyWire
New York, NY
www.CryptoCurrencyWire.com
212.994.9818 Office
[email protected]
CryptoCurrencyWire is powered by IBN
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
- PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
- PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
- PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
- Source: https://www.cryptocurrencywire.com/jpmorgan-expects-ethereum-to-outshine-bitcoin-in-2024/
