JPMorgan, the financial guru, has made a bold prediction that’s causing a stir in the crypto world. Forget about Bitcoin; according to the banking giant, Ethereum is set to shine in the upcoming year.
Let’s break down JPMorgan’s forecast and see what it means for the crypto scene.
JPMorgan’s analysts predict that Ethereum will outperform Bitcoin and other cryptocurrencies in 2024. The buzz is all about Ethereum’s EIP-4844 upgrade, known as Protodanksharding. This significant upgrade, scheduled for the first half of 2024, is expected to boost Ethereum’s network activity. By introducing innovative data blobs that supercharge Layer 2 networks without changing Ethereum’s block size, this upgrade promises a major performance boost for Ethereum.
Also Read: Green Light or Red Light? SEC Puts Invesco Galaxy Ethereum ETF on Hold
While JPMorgan is optimistic about Ethereum, it’s cautious about Bitcoin’s future. Analysts highlight factors like potential ETF approvals and the upcoming 2024 halving event, suggesting these are already reflected in Bitcoin’s current price. JPMorgan speculates that Bitcoin’s market price might align with its production cost after the 2024 halving.
Currently at around $40,000, Bitcoin is expected to reach $50,000 by the end of December.
DeFi Proves to Be A Hurdle
In an interesting twist, JPMorgan reveals that decentralized finance (DeFi) is facing challenges in disconnecting from traditional banking. Despite high hopes, DeFi’s inability to seamlessly work with standard banks remains a significant hurdle for wider crypto adoption. Tokenization in the financial world is slow due to weak regulations, malfunctioning platforms, and a lack of collaboration.
While 2023 lacked excitement in crypto venture capital funding, the last quarter brought hope for investors. JPMorgan remains cautiously optimistic, expecting steady growth in the first quarter of 2024 as a possible sign that the “crypto winter” may be ending.
Even though JPMorgan’s CEO, Jamie Dimon, criticized Bitcoin, its blockchain unit, Onyx, tells a different story. Onyx’s remarkable growth, from 100 to 300 employees in three years, contrasts Dimon’s recent comments supporting a Bitcoin ban. This internal duality showcases JPMorgan’s focus on blockchain technology for secure business transactions, setting it apart from peers embracing crypto more openly.
Read More About This: Bitcoin Should Be Closed Down? Binance CEO Slams Dimon’s Anti-Crypto Stance
JPMorgan’s observations reveal a complex picture of the crypto future in a volatile market. Whether Ethereum will surpass Bitcoin or if DeFi can truly break free remains uncertain. As 2024 approaches, the crypto community eagerly awaits these forecasts on the brink of a new digital frontier.
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