JPMorgan analysts predict that Ethereum will see massive growth in 2024, mostly thanks to its upcoming EIP-4844 upgrade. This upgrade will introduce improved sharding methods.
Currently, the crypto community is watching the Bitcoin price movement amidst hopes that it will enter a full-on bull run and reach a new price high in 2024. But according to a new report from JPMorgan, it might actually be Ethereum that will see runaway success in 2024.
2024 a Big Year for Ethereum?
As per the report, Ethereum will “re-assert itself and recapture market share within the crypto ecosystem,” in 2024. The main reason why JPMorgan shares this optimism is because of the incoming EIP-4844 upgrade scheduled to take place in the Ethereum ecosystem.
The EIP-4844 upgrade will see the ecosystem take on a more efficient sharding technique. Sharding involves splitting a blockchain into smaller chains so that more transactions can be processed. The EIP-4844 upgrade means that Ethereum will not split itself into smaller shards but will instead create data packets that can handle these extra transactions.
There will also be immense benefits for Ethereum Layer-2 solutions like Arbitrum which will enjoy lower transaction fees and increased network capabilities.
Upgrades within the Ethereum ecosystem have always been a big deal. The recent switch to a proof-of-stake consensus earned Ethereum a lot of favor with the public and the same will likely be true of the EIP-4844 upgrade. JP Morgan believes that this will lead to not just goodwill but a stronger and more successful blockchain as well.
This doesn’t mean that Bitcoin is being completely left behind either. JPMorgan believes that several factors, including the incoming halving and the potential approval of an ETF, will help the Bitcoin price improve. A halving typically comes with positive price movements for Bitcoin and it looks like this incoming one will be no different.
The ETF is especially interesting because it has been so heavily pursued within the industry. Many companies have applied for it over the years but BlackRock seems to be on the brink of being approved. Should the ETF go through, we can expect the price, as well as public interest in Bitcoin, to increase.
It has also been speculated that there will be some benefits for Ethereum as well. BlackRock is believed to be pursuing an Ethereum ETF if the Bitcoin ETF goes through and the token should enjoy the same benefits.
The report also noted some of the ‘disappointments’ of the decentralized finance (DeFi) sector, mainly its failure to embed itself in the traditional finance world. Several factors were noted as the cause of this, including a lack of regulations and the introduction of Central Bank Digital Currencies.
With all these considered, 2024 is shaping up to be a profitable year for the major tokens and hopefully, this will trickle down to the rest of the industry.