JPMorgan: Bitcoin halving and spot ETF approval already Price-in, ETH expected to outperform BTC next year

The Block cited a report stating that JPMorgan outlined several points, believing that ETH will outperform BTC by 2024, regaining its market share in the cryptocurrency market.

Ethereum to Outperform Bitcoin by 2024, EIP-4844 to be Key Catalyst

The report suggests that the EIP-4844 or Protodanksharding upgrade scheduled for the second half of 2024 will significantly enhance network activity on Ethereum.

JPMorgan analysts reiterated that the upgrade will be particularly beneficial for Layer 2 solutions like Arbitrum and Optimism, further improving L2 performance without altering Ethereum's block size.

However, JPMorgan's report in September indicated skepticism towards the network effects of the EIP-4844 upgrade.

JPMorgan: Ethereum Shanghai Upgrade Disappoints Network Activity Performance

Bitcoin Halving, Spot ETF Approval Already Price-in

Analysts noted that bullish factors for Bitcoin, such as the halving of block rewards and potential approval of spot ETFs, have already been factored into the price.

DeFi, Tokenization Progressing Slowly

JPMorgan also mentioned the disappointment in DeFi's inability to penetrate traditional financial systems, indicating the necessity of transitioning from the crypto space to real-world applications.

Furthermore, the progress of tokenization remains slow, mostly in experimental stages, hampered by platform fragmentation and lack of interoperability.