According to The Block, analysts at JPMorgan released a report this week stating that while they remain cautious about the overall cryptocurrency market next year, Ethereum’s performance in 2024 is expected to surpass Bitcoin and other cryptocurrencies.
The report, led by analyst team led by Nikolaos Panigirtzoglou, stated that Proto-Danksharding is the first step in implementing the full Danksharding sharding technology, which introduces a new data structure without changing the Ethereum block size, thereby improving Ethereum’s throughput and efficiency. This upgrade is crucial for layer two networks such as Arbitrum and Optimism, as it helps significantly reduce transaction costs on the Ethereum layer two network.
Regarding Bitcoin, JPMorgan analysts believe that many events considered bullish for next year, including potential ETF approvals and the upcoming halving, are already priced into the market. Analysts noted that after the halving in 2020, there was a decrease in the ratio of Bitcoin’s market price to production cost, indicating a similar trend may occur after the halving in 2024. Additionally, analysts pointed out that the current market price of Bitcoin is approximately twice its production cost, suggesting that the market has largely factored in the halving event in 2024, which is already reflected in current prices. In other words, since the market has already anticipated this event, the halving event may not have an additional positive impact on Bitcoin’s price.