Ethereum To Outperform Bitcoin In 2024 Despite BTC ETFs and Bitcoin's Halving, JPMorgan Says

Ethereum To Outperform Bitcoin In 2024 Despite BTC ETFs and Bitcoin’s Halving, JPMorgan Says

Updated: 14 December 2023

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Ethereum will outperform Bitcoin next year despite the halving and the possible launch of Bitcoin ETFs, JPMorgan said.

“We believe that next year Ethereum will re-assert itself and recapture market share within the crypto ecosystem,” JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a note on Dec. 13.

JPMorgan Based Its Prediction On The Ethereum EIP-4844 Upgrade

The Wall Street bank believes an upcoming upgrade could be one of the big events that will drive Ether’s price next year.

“The main catalyst is the EIP-4844 upgrade or Protodanksharding, which is expected to take place during the first half of 2024,” said the JPMorgan analysts. “We believe that this upgrade will likely prove a bigger step towards improving Ethereum network activity, thus helping Ethereum to outperform.”

Protodanksharding is the first step towards the full implementation of Danksharding within the Ethereum network.

Danksharding avoids the complicated process of splitting Ethereum into multiple shard chains and will instead introduce data blobs. These temporary packets of data will attach to blocks. The data blobs will also be able to hold more data than is currently possible within the network.

Layer-2 networks like Arbitrum and Optimism are expected to benefit from this upgrade, according to the JPMorgan analysts with the upgrade opening up temporary space to store additional data. This will subsequently increase network throughput and reduce transaction fees for Layer-2 networks transacting on Ethereum.

Bitcoin Halving Event Already Priced In

When sharing their belief that Ether will outperform Bitcoin in 2024, the JPMorgan analysts said that bullish factors for Bitcoin have already been priced in.

Despite the upcoming Bitcoin halving event expected to take place in April next year, and the possible approval of spot Bitcoin ETFs (exchange-traded funds) in January, the analysts stick to their theory that Ether will outshine the market leader.