According to an analysis, by JPMorgan, Ethereum ETH -4.07%, which currently holds the position in terms of market capitalization among cryptocurrencies is expected to experience substantial growth and surpass Bitcoin BTC -1.03% and other cryptocurrencies by 2024. The analysis was conducted by Nikolaos Panigirtzoglou, a managing director of market strategy at JPMorgan.
The main reason behind this prediction is the Ethereum Improvement Proposal (EIP) 4844 commonly known as Proto Danksharding. This upgrade is scheduled to be implemented in the half of 2024. Is anticipated to significantly enhance the functionality of the Ethereum network.
Proto Danksharding has been specifically designed to enhance the efficiency of Ethereum rollups by reducing transaction fees. It will introduce “data blob” transactions that’re temporary on the Ethereum blockchain.
The objective is to improve network operability and establish a scaling solution primarily based on rollups. This aligns with Ethereum co founder Vitalik Buterins roadmap for scaling.
If the EIP 4844 upgrade progresses as planned and achieves its intended improvements it could lead to an increase in network activity for Ethereum. Consequently this could strengthen its position within the cryptocurrency ecosystem. Potentially allow it to regain market share from competitors, like Bitcoin.