๐ JPMorgan's Bold Prediction: Ethereum to Outshine Bitcoin in 2024!
JPMorgan analysts foresee a significant shift in the crypto landscape, predicting that Ethereum (ETH) will outperform Bitcoin (BTC) in 2024. Here are the key insights:
๐ Network Upgrades and Protodanksharding: Ethereum's Winning Formula
JPMorgan dismisses the hype around Bitcoin ETFs and the upcoming halving, emphasizing that Ethereum's potential lies in its Protodanksharding (EIP-4844) upgrade. Expected in April, this marks a crucial step towards the implementation of "danksharding," a scaling technique set to enhance Ethereum's layer 2 networks, offering increased transaction throughput and reduced fees.
๐ Bolstering Ethereum's Comeback
The bank believes that Protodanksharding will reinvigorate Ethereum after a period of relative underperformance. Despite the revival of DeFi and NFTs on other networks, Ethereum's activity has seen a lull since the Shanghai upgrade in April.
๐ก Bitcoin's Challenges: Overbought Levels and Priced-In Halving
JPMorgan challenges the prevailing optimism around Bitcoin, suggesting that the overbought levels reminiscent of 2021 are driven by excessive expectations for SEC approval of spot Bitcoin ETFs.
โ๏ธ Halving and Production Cost: Already Factored In
Addressing the much-anticipated Bitcoin halving in April, JPMorgan argues that the event's impact is already reflected in the current cost of BTC production for miners. The ratio of the bitcoin price to production cost suggests that the 2024 halving is largely priced in.
๐ Market Trends: BTC vs. ETH
By year-to-date price action, BTC has surged by 158%, outperforming ETH, which is up 90%. However, JPMorgan predicts a shift, asserting that Ethereum's technical upgrades will position it as the frontrunner in 2024.
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