Why Ethereum Is Bound for Significant Gains in 2024

As the cryptocurrency industry evolves, Ethereum (ETH) stands out as a major contender for significant price gains in 2024.

This projection is grounded in a series of factors and expert insights. Subsequently pointing toward a bright future for the second-largest digital currency.

Ethereum Is Ready to Outperform

Ethereum witnessed the successful implementation of the Shanghai upgrade in 2023. This was a pivotal moment that bolstered the network’s infrastructure. Kane Warick, Founder of Synthetics, reflected on 2023 as a period of steady growth for Ethereum despite the absence of a singular, monumental event.

The consistency in Ethereum’s development, especially its transition to Proof-of-Stake (PoS) and the ongoing advancement of layer 2 solutions, laid a solid foundation for its future dominance.

2023 was touted as the year of building for developers in the crypto and Web 3 market. This rings true for Ethereum, with many projects initiated in the preceding years coming to fruition. This tech, though time-consuming in development, is now set to bolster Ethereum’s performance in 2024.

“Technology can take a long time to build. It can take a while for it to come to fruition. Similarly, with the overall Ethereum roadmap, the the kind of core technical upgrades have taken quite a while to to get to where they need to be. So I think that everything is positioned now for Ethereum to really dominate,” Warick said.

JPMorgan shared a similar outlook, predicting Ethereum’s outperformance over Bitcoin in 2024. The bank cited upcoming upgrades to reduce transaction costs and enhance speeds as key drivers for Ethereum’s growth.

While Ethereum has consistently held the position as the second-largest crypto asset, its dominance in transaction activity and narratives, from NFTs to decentralized finance (DeFi), cements its authority in the market.

“We believe Ethereum will re-assert itself and recapture market share within the crypto ecosystem. The main catalyst is the EIP-4844 upgrade or Protodanksharding, which is expected to take place during the first half of 2024. We believe that this upgrade will likely prove a bigger step towards improving Ethereum network activity, thus helping Ethereum to outperform,” analysts at JPMorgan stated.

Read more: A Bullish Case for Ethereum—Why ETH Could Skyrocket in 2024

Ethereum Against the GMO Global Liquidity Index. Source: Global Macro Investor

Similarly, Raoul Pal, the CEO of Real Vision, expressed confidence in Ethereum’s performance for 2023. Based on the liquidity indicator, Pal predicted that Ethereum’s next price milestone could reach approximately $5,300. This indicates that Ethereum will likely achieve new all-time highs in the first half of 2024.

“Ethereum is just doing what it’s supposed to be doing, but it’s not giving us the big surprise. I think that surprise comes the moment the [Bitcoin] ETF is out and people will focus on the Ethereum ETF. It’ll bring the Ethereum ecosystem alive… Ethereum will play catchup, and it’ll do well,” Pal emphasized.

Competition in Cryptos Intensifies

Still, dominating the cryptocurrency market is not without its challenges. Competition from other networks like Solana and Cardano significantly threatens Ethereum’s dominance.

These competitors, striving towards similar goals on their respective networks, are vying for a share of the market attention. Nonetheless, Ethereum’s consolidated ecosystem, particularly its layer 2 scaling solutions like Arbitrum and Optimism, has attracted major players like Coinbase, strengthening its position.

“In this slow growth for Ethereum, there is no major catalyst. It’s just going to be constant adoption. It is by far the dominant platform for a reason, it has the best tech, it has the best engineers, and it has the widest adoption. I think that as an institution looking to do things with smart contracts, Ethereum is the obvious choice,” Warick added.

Institutional adoption is another frontier where Ethereum is expected to make significant strides. With institutions increasingly interested in tokenizing real-world assets, Ethereum has become the go-to platform for smart contract implementation.

Read more: How to Buy Ethereum (ETH) and Everything You Need to Know

This gradual yet steady adoption will likely contribute to Ethereum’s growth, boosting its potential to flip Bitcoin in market dominance. Still, this would require a substantial price appreciation relative to Bitcoin, a move that would undoubtedly energize the crypto market and redefine narratives.