JP Morgan: EIP-4844 upgrade will push Ethereum to outperform Bitcoin next year

JPMorgan analysts, they remain "cautious" about the overall cryptocurrency market for the next year, but the performance of Ethereum in 2024 may surpass Bitcoin and other cryptocurrencies.

Nikolaos Panigirtzoglou and other JPMorgan analysts wrote in a report on Wednesday: "We believe that Ethereum will re-establish itself next year and regain market share in the cryptocurrency ecosystem. The main catalyst is the expected EIP-4844 upgrade (Protodanksharding) in the first half of 2024. We believe that this upgrade is likely to be an important step in improving Ethereum network activity, thus helping Ethereum perform well."

JPMorgan analysts reiterated that this upgrade is particularly beneficial to L2 networks such as Arbitrum and Optimism, as it provides additional temporary data space, which can increase network throughput and reduce transaction fees for Ethereum L2 networks.

JPMorgan analysts also stated that factors that are considered positive for Bitcoin next year include the possible approval of spot ETFs and the upcoming halving, which have already been reflected in the price. The analyst concluded: "Given that the current ratio of Bitcoin price to production cost is about twice, this means that the Bitcoin halving event in 2024 has basically been reflected in the price." (The Block)