Coinbase Institutionalâs report highlights optimism for the crypto market, driven by expectations of U.S. rate cuts and Chinaâs monetary stimulus, which could boost bitcoinâs performance in Q4 2024. While bitcoin remains strong, ethereum faces challenges with rising transaction fees and limited impact from U.S. spot exchange-traded funds (ETFs).
Coinbase: âWe Anticipate a Constructive Q4 2024â
Coinbase Institutional published its latest âTakeaways from Token2049â on Friday. The report, co-authored by David Duong, Head of Institutional Research, and David Han, Institutional Research Analyst, summarized key insights from the Token2049 and Solana Breakpoint conferences, which were held in Singapore. They wrote:
The report focused on bitcoin and high-beta crypto assets, with a strong overall outlook for the market in the upcoming months.
Ethereumâs recent struggles, particularly its rising transaction fees, were also discussed. âOnchain activity is growing, with rising DEX volumes and higher Ethereum gas prices,â the report noted. However, despite the recent launch of spot ETH ETFs in the U.S., the token has not seen the same benefits as bitcoin. The report described:
This skepticism contrasted with the excitement surrounding bitcoin and alternative networks like Solana, which is rapidly expanding its ecosystem with new products and partnerships.
Despite some concerns about ethereumâs performance, the broader crypto market remains well-positioned for growth. This optimism is fueled by Chinaâs massive fiscal and monetary stimulus and supportive U.S. economic conditions. Solana and other emerging layer-1 networks are increasingly challenging ethereumâs dominance, with more attention being paid to scalability and transaction efficiency. The rise of decentralized exchanges (DEXs), along with improvements in blockchain infrastructure, signal promising developments for the crypto space as a whole.