According to JPMorgan Chase’s latest forecast report on the 13th, analyst Nikolaos Panigirtzoglou pointed out that they expect Ethereum to outperform Bitcoin and other cryptocurrencies in 2024. They believe that Ethereum will regain its place in the cryptocurrency ecosystem and regain market share. The main catalyst for this outperformance is the EIP-4844 upgrade or Protodanksharding in the first half of 2024. They believe that this upgrade will be an important step in improving the Ethereum network, thereby helping Ethereum surpass other cryptocurrencies in the market.
Protodanksharding is Ethereum’s first step towards a more efficient Danksharding sharding technology. Its core idea is to accommodate more data by introducing data blocks and appending temporary data to the blocks. This temporary data is not permanently stored or accessed by the EVM. This step lays the foundation for the future development of sharding technology in Ethereum.
This upgrade is considered very helpful for Layer 2 networks such as Arbitrum and Optimism. Analysts said that because this technology provides additional temporary data space, it can effectively increase the throughput of the network and reduce transaction fees on the Layer 2 network.
So it can essentially improve the efficiency of Layer 2, but will not change the size of the Ethereum block.
JP Morgan analysts pointed out that since the market is already familiar with Bitcoin spot ETFs and the upcoming Bitcoin halving, BTC’s bullishness has been fully absorbed by the market .
They believe that Bitcoin’s recent gains have reflected future benefits, and it may not be as strong as in the past few months.
JPMorgan analysts believe that the progress in the DeFi field is quite disappointing. They believe that the slow progress of integration with traditional finance is the key to making the transition from crypto to real-world applications.
(DeFi) is still in the experimental stage and faces various challenges. First, the phenomenon of fragmentation results in a lack of integration and interoperability among DeFi projects. In addition, the lack of cooperation and interaction between platforms also limits its development. At the same time, the decisions of the Federal Reserve System and the European Central Bank to postpone the launch of central bank digital currencies have hindered the development of DeFi. In addition, due to the lack of regulation, there are potential risks and uncertainties in the DeFi market. Therefore, while DeFi has huge potential,
Finally, the analyst mentioned that although the cryptocurrency market VC investment has improved in late 2023, the current situation has not yet fully recovered, if this improvement can be sustained By the first quarter of 2024, this will signal the end of the cryptocurrency winter.
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