JPMorgan analysts, while maintaining a generally cautious stance on the cryptocurrency market, predict ethereum-recapture-market-share-054744420.html” target=”_blank” rel=”nofollow”>ethereum (eth) outperforms bitcoin (btc) and other digital currencies in market price performance by 2024.
This bullish outlook for ethereum reflects a distinctive outlook within the institution, suggesting that analysts see unique potential and favorable prospects for ethereum relative to other digital assets, even amid a general sentiment of caution toward the broader crypto landscape. broad.
In a note published on Wednesday, a team of analysts led by Nikolaos Panigirtzoglou conveyed their expectation that ethereum (eth) will regain its prominence and regain market share within the cryptocurrency ecosystem in the coming year.
ethereum will surpass bitcoin – JPMorgan
Source: Coingecko
“We believe that next year ethereum will reassert itself and regain market share within the crypto ecosystem,” Panigirtzoglou wrote in a note.
Analysts highlighted the pivotal role of the EIP-4844 update, popularly known as Protodanksharding, as the main catalyst for ethereum's anticipated resurgence.
This crucial update, scheduled to be implemented in the first half of 2024, is set to bring substantial improvements to ethereum network activity.
Danksharding is a more efficient sharding method for ethereum, and protodanksharding is the first step towards its full implementation. Danksharding avoids the tedious process of splitting ethereum into multiple shard chains, unlike the initially intended sharding method.
eth market cap currently at $273 billion. Chart: TradingView.com
Instead, data blobs are introduced, which are connected to blocks and can contain more data than blocks, but are not permanently stored or accessed by the ethereum virtual engine.
Meanwhile, JPMorgan bitcoin–crypto–nft–ethereum-standard-chartered-2023-10″ target=”_blank” rel=”nofollow”>optimistic forecast aligns with Standard Chartered, as they previously stated in a statement that Ether could see a 400% rise in a few years, followed by a more sustained bullish move towards $35,000.
Geoff Kendrick, head of foreign exchange, Western and digital asset research, expressed the view that Ether's upward trajectory could develop at a more gradual pace compared to bitcoin.
ethereum Price Prediction: 5x Increase
Despite this potentially longer time frame, Kendrick sees ethereum eventually reaching a higher price multiple than bitcoin relative to its current levels. Specifically, he anticipates ethereum will reach a 5.0x price multiple, surpassing bitcoin's expected 3.5x multiple.
According to JPMorgan analysts, Layer 2 networks such as Optimism (OP) and Arbitrum (ARB) would benefit the most from the upgrade.
Ether seen rising to $2,426 this month. Source: crypto/ethereum/price-prediction/" target="_blank" rel="nofollow">Coincodex
Layer 2 networks in crypto/ethereum/price-prediction/” target=”_blank” rel=”nofollow”>ethereum would benefit from the increased temporal data space, increasing network performance and reducing transaction fees. Data blobs improve the efficiency of the Layer 2 network without changing the size of an ethereum block.
Meanwhile, as ether discovers new applications, its demand will increase and trends related to cryptocurrencies will only grow. For example, the most common use case for ethereum is nft transactions, which Kendrick believes will grow.
At the time of writing, Ether was trading at $2,281, up 5.0% over the last 24 hours, while bitcoin was trading at $42,910, up 2.3% over the same time period.
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