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JPMorgan Predicts Ether to Outperform Bitcoin in 2024

JPMorgan predicts Ether will outperform Bitcoin and other cryptocurrencies in 2024, thanks to the EIP-4844 update.

This update is a step towards the full implementation of Danksharding, aiming to improve the efficiency of the Ethereum network.

Analysts remain cautious about the overall crypto market and highlight the current challenges of decentralized finance.

JPMorgan’s Optimistic Forecast for Ethereum

JPMorgan analysts, led by Nikolaos Panigirtzoglou, anticipate that Ether, the native cryptocurrency of Ethereum, will surpass Bitcoin and other cryptocurrencies in 2024. This prediction is based on the EIP-4844 update of Ethereum, also known as Protodanksharding, scheduled for the first half of 2024. According to JPMorgan, this update will represent a significant advancement in improving the activity of the Ethereum network.

EIP-4844 Update and Protodanksharding

Protodanksharding is an initial step towards the full implementation of Danksharding, a more efficient form of sharding for Ethereum. Unlike the originally planned sharding technique, Danksharding avoids the complex process of dividing Ethereum into multiple chains called shards. Instead, it introduces data blobs, temporary data packets attached to blocks, capable of holding more data than the blocks themselves, but without permanent storage or access by the Ethereum virtual machine. This is particularly advantageous for layer 2 networks like Arbitrum and Optimism, as it provides additional temporary data space to increase network throughput and reduce transaction fees.

Analysis of the Crypto Market and Decentralized Finance

While JPMorgan remains overall cautious about the crypto market in 2024, analysts note that potentially positive factors for Bitcoin, such as the approval of spot ETFs and the upcoming halving, appear to be already priced in. Regarding decentralized finance, they highlight its current inability to infiltrate the traditional financial system, a major obstacle for the transition from native crypto applications to real-world applications.

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