Analysts at JPMorgan Chase (JPM) are forecasting that Ethereum (ETH) will outperform Bitcoin (BTC) in the year ahead.
JPMorgan says in a new outlook that Ethereum is likely to outperform all other cryptocurrencies in 2024 driven by the EIP-4844 upgrade that is expected to take place during the first half of next year.
“We believe that this upgrade will likely prove a bigger step towards improving Ethereum network activity, thus helping Ethereum to outperform,” reads the report on crypto.
The new upgrade will enable Ethereum to process and hold more data, making the second largest cryptocurrency by market capitalization more efficient.
At the same time, JPMorgan says that the Bitcoin halving process that’s taking place in 2024 is already priced into the biggest crypto by market cap.
However, JPMorgan acknowledges that there are several catalysts looming on the horizon for Bitcoin, including the potential approval of exchange-traded funds (ETFs) and a reduction in interest rates.
Overall, JPMorgan said that it is cautiously optimistic for the cryptocurrency market in 2024, noting that venture capital funding in the crypto space remains “tentative.”
Ethereum’s price has risen 92% in 2023 to $2,302.00 U.S. The price of Bitcoin has gained 160% this year to trade at $43,170.00 U.S.
