PMorgan Chase & Co., a leading global financial company, has directed its analytical focus towards Ethereum, predicting that it will outperform Bitcoin and other crypto assets in 2024. Despite CEO Jamie Dimon's skepticism towards cryptocurrencies, JPMorgan's analysis reflects a contrasting stance on Ethereum's potential.
Ethereum's EIP-4844 Upgrade as a Game-Changer
The optimistic outlook for Ethereum is primarily based on the upcoming EIP-4844 upgrade, also known as Protodanksharding. Expected in the first half of 2024, this upgrade is set to significantly enhance the network's efficiency and increase activity on the Ethereum blockchain.
Impact on Ethereum Layer-2 Scaling Networks
The EIP-4844 upgrade is anticipated to benefit Ethereum layer-2 scaling networks like Polygon, Arbitrum, and Optimism. It aims to provide additional temporary data space, potentially boosting network throughput and furthering the capabilities of these scaling solutions.
Ethereum's Current Market Performance
As of the latest data, Ethereum's trade price stands at $2,299, showing a 9.5% increase over the last 30 days. This positive price action reflects growing market interest and investor confidence in Ethereum.
Rising Interest in Ethereum ETFs
There has been notable interest from fund managers in launching Ethereum spot ETF products, targeting significant investment in Ethereum. Currently, nearly seven Ethereum spot ETF applications are awaiting regulatory approval from the U.S. Securities and Exchange Commission (SEC).
SEC's Delayed Decision on Ethereum Spot ETF
The SEC recently postponed its decision on the Invesco Galaxy Ethereum Spot ETF to February 6, 2024. This delay highlights the regulatory body's cautious approach but also underscores the growing interest in Ethereum-based investment products.
Conclusion: Ethereum Poised for Market Leadership in 2024
JPMorgan's analysis suggests that Ethereum is on track to outshine Bitcoin and other cryptocurrencies in 2024, thanks to the anticipated network upgrade and increasing investor interest. Ethereum's market performance and the SEC's evaluation of related ETFs will be key factors to watch in the upcoming year.