#Ether has surged by 19% in the first three weeks of the year, offsetting last year's 25% decline.
Growing Interest in Ether Due to Potential ETF
Investors are reconsidering Ether investments due to increasing interest in spot #ETFs (Exchange-Traded Funds) and Ethereum's dominance in the fields of DeFi (Decentralized Finance) and NFTs (Non-Fungible Tokens), as analysts report. Many consider Ether a crucial component of their diversified cryptocurrency portfolios.
 In 2023, Ether had a lower performance compared to Bitcoin, but it attracted investors' attention with new smart contracts and non-fungible tokens (NFTs), as well as optimism surrounding spot ETFs. Analysts anticipate renewed investor focus on Ether this year because Ethereum remains a leading blockchain for smart contracts, and Ether is seen as a top candidate for the creation of a US-based spot ETF.
 Coinbase noted that Ether could have a "breakthrough year," and reports of Bitcoin ETFs provided a boost to Ethereum, temporarily reaching prices above $2,700, the highest since May 2022. Several companies, including BlackRock and VanEck, also have plans to introduce Ether-based spot ETFs.
 Spot ETFs enable investors to invest in real cryptocurrencies without owning them, considered a better alternative to futures-based ETFs, which are sensitive to rolling costs. The launch of Ethereum spot ETFs could attract institutional and retail funds to the market, similar to what Bitcoin spot ETFs recently did in the US.
 Dencun Upgrade and Increased Institutional Demand
The upcoming #Dencun upgrade on the Ethereum network could also boost investor interest in Ether. This upgrade aims to improve the scalability of the Ethereum mainnet using "data shards." The upgrade has already been deployed on the Goerli testnet, and once implemented on the mainnet, the network would not need to validate every transaction but only the correctness of data blobs attached to the block. This could help reduce congestion and network fees significantly.
 Coinbase noted that this upgrade could reduce network fees by 90% or more, making it attractive to investors. Institutional crypto firm ETC Group believes that Ethereum remains the leading blockchain for developing decentralized applications, NFTs, and tokenized assets, despite Bitcoin's growing popularity.
 Other Factors Supporting Ether
Ether investors can also generate additional yields through staking or locking up their Ether in the network, earning rewards with an average annual rate of around 3.84%. This means Ether holders can earn passive income.
 Additionally, the mechanism of burning a portion of transaction fees in ETH has a deflationary effect on the token supply, which can also be positive for investors.
 Conclusion
Overall, it appears that Ether has an exciting year ahead in 2024. Growing interest in spot ETFs, the upcoming Dencun upgrade, and its continued dominant position in smart contracts and tokenization could support the growth and performance of this cryptocurrency. With upcoming events on the horizon, the investment potential of Ether in 2024 is undeniably intriguing, and monitoring its development will undoubtedly be of interest to all cryptocurrency enthusiasts.
 Notice:
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