JPMorgan announced in a research note on Wednesday that the investment bank expects Ethereum to outperform Bitcoin in 2024.
That prediction comes as a surprise to many in the crypto community after Bitcoin has led the recent rally. Bitcoin is up 156% this year, while Ethereum is up only 90%. The ETH-BTC ratio, a measure of the growth of Ethereum relative to Bitcoin, has fallen to 0.053 from 0.072 at the start of the year.
Despite Ethereum’s lag this year, JPMorgan analyst Nikolaos Panigirtzoglou stated that “we believe that next year Ethereum will re-assert itself and recapture market share within the crypto ecosystem.”
Proto-Danksharding Promises to Boost Ethereum’s Speed
The catalyst behind JPMorgan’s optimistic outlook is Ethereum’s recent EIP-4844 upgrade, which introduces proto-Danksharding onto the world’s largest smart contract network.
Danksharding is a form of data sharding that uses temporary data blobs that temporarily attach to blocks in the Ethereum blockchain. This extra data is expected to boost network throughput, particularly for Layer-2 networks such as Arbitrum that operate on top of Ethereum.
The proto-danksharding upgrade initiates a test of how danksharding can improve transaction speeds and lower gas fees on Ethereum. If successful, the upgrade could pave the way for wider implementation and make Ethereum more competitive with ultra-fast chains like Solana and Cardano.
Ethereum Spot ETF Driving Further Speculation around ETH
While not explicitly mentioned in JPMorgan’s report, there’s another potential catalyst for Ethereum in 2024: a spot Ethereum ETF.
BlackRock submitted an application to the SEC for a spot ETH ETF in mid-November. While there’s been little movement on the application so far, analysts widely expect that the SEC will approve an Ethereum ETF shortly after it approves a wave of spot Bitcoin ETF applications.
If approval comes, it’s likely to happen in 2024—and Ethereum could see a significant run-up in price as investors speculate on the SEC’s decision and the future mainstreaming of ETH.
Bitcoin Minetrix Stands to Surge from Ethereum’s Gains
Ethereum’s rise in 2024 could bring many altcoins built on the Ethereum blockchain along with it. Chief among tokens that stand to benefit is Bitcoin Minetrix ($BTCMTX), a stake-to-mine token that enables investors to earn Bitcoin.
Bitcoin Minetrix is designed to revolutionize the way that investors mine Bitcoin. $BTCMTX token holders can stake their coins and earn mining credits, which they can redeem for hashpower in the cloud. Mined Bitcoin is sent back to the Bitcoin Minetrix pool and distributed to investors as a reward.
Bitcoin Minetrix benefits from Ethereum’s performance in two key ways.
First, any growth in the Ethereum ecosystem tends to benefit altcoins that use its network. Investors become more willing to buy altcoins, and especially those like Bitcoin Minetrix that deliver above-average staking rewards.
Second, Ethereum outperforming Bitcoin in 2024 could draw attention and miners away from Bitcoin, making it easier and cheaper to mine BTC. Bitcoin Minetrix token holders will get more hashpower for their staked $BTCMTX, enabling them to mine more Bitcoin with the same amount of investment.
Even if Ethereum outperforms Bitcoin next year, the world’s largest cryptocurrency is likely to keep rising—so any gains in mining returns would be a boon for $BTCMTX token holders and send the value of this token soaring.
The good news for investors is that there’s a chance to buy Bitcoin Minetrix now before this flywheel starts turning. $BTCMTX is available on presale at a price of $0.0122, but investors have to hurry. The presale has already raised more than $5.25 million and the price is set to increase in just over 48 hours.