A group of analysts from JPMorgan Bank, headed by Nikolaos Panigirtzoglou, forecasts that Ethereum will surpass Bitcoin in terms of growth in the coming year. Panigirtzoglou emphasized the advantage of Ethereum with the upcoming EIP-4844 update, also referred to as “proto-danksharding.” This update is anticipated to improve the scalability, performance, and overall activity of the Ethereum network:
“We anticipate Ethereum to reclaim its market share in the crypto ecosystem next year. The EIP-4844 update, scheduled for the first half of 2024, will serve as a significant catalyst for this growth. It will improve the Ethereum network’s scalability, performance, and overall functionality.”
Proto-danksharding entails deploying a streamlined iteration of sharding within the Ethereum network. Instead of splitting the network into distinct sharding networks, this technology forms temporary ‘data bubbles’ affixed to blocks, storing data for a designated time frame.
The analysts at JPMorgan anticipate overall growth in the cryptocurrency industry, driven by the upcoming Bitcoin halving and the potential approval of cryptocurrency spot ETFs in the United States. Despite this positive outlook, they recommend exercising caution when investing in cryptocurrencies, especially within the decentralized finance (DeFi) sector. Panigirtzoglou expressed dissatisfaction with DeFi’s incapacity to effectively rival traditional finance.
It’s noteworthy that JPMorgan CEO Jamie Dimon has recently shared his personal stance on Bitcoin and digital assets, stating that he would ban their use if he were in the American government’s position.
Ethereum Price Forecast: Expected to Increase Fivefold
Despite the potential for a more extended timeframe, Kendrick foresees that Ethereum will ultimately attain a higher price multiple than Bitcoin at its current level. More precisely, he anticipates Ethereum’s price multiple to reach five times, surpassing Bitcoin’s projected multiple of 3.5 times.
As per JPMorgan analysts, Layer 2 networks, including Optimism (OP) and Arbitrum (ARB), are poised to gain significant advantages from these upgrades.
Layer 2 networks on Ethereum are set to gain advantages from the increased temporary data capacity, leading to improved network throughput and reduced transaction costs. The use of data blobs enhances the efficiency of Layer 2 networks without altering the block size of Ethereum.
Simultaneously, as Ether explores new applications, the demand for ETH is anticipated to increase, and trends related to cryptocurrencies are expected to amplify. One notable example is the widespread use of Ethereum in NFT transactions, a trend that Kendrick predicts will expand.
As of the time of writing, at 5:50 am on December 15, BITCOIN is trading at $43,073, with a 0.09% increase in the past 24 hours. Ethereum is currently trading at $2,308, reflecting a 2.13% increase during the same period.
By. Pham Thanh Bien
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