JPMorgan analysts predict that Ethereum (ETH) will outperform Bitcoin and other cryptocurrencies next year, citing the upcoming EIP-4844 upgrade, also known as Protodanksharding, as a key catalyst for Ethereum's revival.
JPMorgan Predicts Ethereum Will Outperform Bitcoin in 2024
In a note published on Wednesday, analysts led by Nikolaos Panigirtzoglou expressed optimism about Ethereum's market share recovery in the crypto ecosystem in 2024.
The expected upgrade, Protodanksharding, is planned for the first half of 2024 and is expected to significantly increase Ethereum's network efficiency.
Unlike the originally planned sharding technique, Danksharding introduces data blocks, which are temporary data packets attached to blocks that can hold more data than blocks but are not permanently stored or accessible by the Ethereum virtual machine.
JPMorgan analysts highlighted the benefits of this upgrade, especially as it offers additional temporary data space for Layer 2 networks such as Arbitrum and Optimism, increases network throughput, and reduces transaction fees for Layer 2 networks on Ethereum.
The bank remains generally cautious about crypto markets in the year ahead but sees potential for Ethereum to outperform based on the positive impact of the Protodanksharding upgrade.
*This is not investment advice.
