JPMorgan Chase analysts foresee a potential shift in the cryptocurrency market dynamics next year, predicting that ethereum will outperform bitcoin and other cryptocurrencies.

According to Business Insider, JPMorgan analysts, in their crypto outlook for 2024, predict ethereum beating bitcoin and gaining market share. They cited the significance of a potential network upgrade for ethereum, particularly referencing the forthcoming EIP-4844 upgrade, also known as Protodanksharding.

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In this photo illustration created in Washington, DC, on September 15, 2022, the Ethereum logo on a physical imitation of an Ethereum cryptocurrency is reflected on a phone screen.

JPMorgan Chase Analysts Cite 'Protodanksharding' Upgrade of Ethereum

The proposed Protodanksharding upgrade is designed to address critical aspects of the ethereum network, aiming to reduce transaction costs and increase the number of transactions processed per second.

If implemented, these changes could help ethereum regain market share within the cryptocurrency ecosystem. JPMorgan Chase analysts expressed worry regarding the overall crypto markets in 2024 but identified ethereum as a potential standout performer. 

They believe ethereum's performance could be boosted by the anticipated upgrade, contributing to the cryptocurrency's competitiveness against bitcoin and other digital assets.

The term "Protodanksharding" encapsulates the proposal's core features, emphasizing its potential to enhance network activity and address scalability challenges that ethereum faces. 

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JPMorgan Chase Forecast: Ethereum vs. Bitcoin

While ethereum has experienced a positive trajectory in 2023, with a nearly 90% increase in value since January, it has lagged behind bitcoin, which saw a more substantial surge of around 154% during the same period.

The discrepancy in performance between ethereum and bitcoin is a notable aspect that JPMorgan Chase addresses in its analysis. In contrast to the optimism that a spot bitcoin ETF will get regulatory approval, JPMorgan analysts adopt a more skeptical stance, suggesting that the approval may not attract significant new capital into the crypto market. 

They argued that any capital influx would likely involve a redistribution of funds within the crypto asset class rather than the entry of new investors. 

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