JPMorgan: Ethereum's performance next year may surpass that of Bitcoin.

Jafar224

JPMorgan analysts suggest that by 2024, Ethereum's performance may surpass that of Bitcoin and other cryptocurrencies. This prediction comes following Ethereum's upgrade EIP-4844 slated for next year.

JPMorgan anticipates that Ethereum's performance in 2024 will outshine Bitcoin and other cryptocurrencies, despite the bank maintaining a "cautious" stance on the overall crypto market for the coming year.

Lead JPMorgan analyst Nikolaos Panigirtzoglou wrote in a report on Wednesday, "We believe Ethereum will regain its role and recapture market share in the crypto ecosystem next year." "The main catalyst is the EIP-4844 upgrade or Protodanksharding, expected to take place in the first half of 2024. We believe this upgrade could be a significant step toward improving Ethereum's network activity, helping Ethereum outperform the broader market.

Protodanksharding is the initial implementation of Danksharding, a more efficient form of sharding for Ethereum. Unlike the originally planned sharding technique, Danksharding avoids the complex process of splitting Ethereum into multiple shard chains. Instead, it introduces data blobs, temporary data packets attached to blocks, capable of accommodating more data than blocks without being permanently stored or accessed by the Ethereum Virtual Machine.

JPMorgan analysts reiterated that this upgrade is particularly beneficial for Layer 2 networks like Arbitrum and Optimism, as it provides additional temporary data space to increase network throughput and reduce transaction fees on Ethereum's Layer 2 networks.

Despite being comparatively more expensive than other visa programs, El Salvador President Nayib Bukele's pro-Bitcoin policies and incentives implemented over the past years may attract Bitcoin enthusiasts seeking a radical change.

In September 2021, he acknowledged Bitcoin as legal tender and eliminated all capital gains taxes for Bitcoin investors. Subsequently, he removed all forms of taxation for technology and cryptocurrency companies operating in the country.

Isha000

I wonder if it will surpass Bitcoin.

Shri

It's indeed a possibility.

Iravan774

Their predictions shouldn't be completely trusted.