A well-known worldwide finance company, JPMorgan hopes that there will be more BTC and other cryptocurrencies in their next year – 2024. They have an outlook that arises in their cautious optimism about the crypto currencies market.
JPMorgan’s Analysis: Ethereum’s Dominance in Crypto Sphere
Nikolas Panigirtzoglou along with his Jp Morgan Analysts forecast in their recent report expect ether to take over majority of the crypto space sometime next year gaining significant market share. The EIP-4844 update or Protodanksharding which is scheduled for early 2024 is identified as the main reason for anticipated increase in Ethereum’s market. This aspect of the update is considered essential for increasing Ethereum’s network efficiency and optimizing its operation.
Ethereum’s Evolution with Protodanksharding
Protodanksharding constitutes the initial stage of complete implementation of the more advanced Danksharding strategy on Ethereum. The advantage with this approach is that it does not segment the network into various branches but rather introduces data blobs in their respective blocks. The blobs are capable of storing more data compared with blocks and cannot be referenced by Ethereum Virtual Machine.
JPMorgan’s Insights: Layer 2 networks get a lift with Ethereum updating
JPMorgan’s team sees ProtoDasharding change as very positive for ethereum’s Layer 2 network. This feature helps in streamlining of the efficiency levels and also reducing transactions costs in Arbitrum(ARB) and optimism(OP) and other layer 2 in a manner that doesn’t change ethereum’s blocksize thank god.
JPMorgan on Bitcoin: Impact assessment of ETF Approval and halving
According to JPMorgan analysts, these events will not impact the price of the cryptocurrency since they are already considered when pricing it. Relative to 2020 block reward halving, the ratio decreased and it is expected that after 2024 halving a similar situation will be observed.
JPMorgan’s DeFi Evaluation: Slow Progress and Challenges
According to JPMorgan, DeFi still lacks in its integration within the conventional financial system. These authors highlight that major Blockchain applications within traditional finance are being created without dependence on public Blockchains. Among the obstacles that stand DeFi in an experimental stage are slow tokenization progress, lack of communication between platforms, delays with central bank digital currencies issued by key banks, and the regulators` position.