NEW DELHI (CoinChapter.com) — Ethereum’s (ETH) performance versus Bitcoin could see significant growth in 2024 as several factors could help Ethereum outshine Bitcoin in the coming year.
The hype surrounding spot Bitcoin ETF shifted investor focus towards Bitcoin, benefiting BTC with increased attention and investment.
Furthermore, the tepid response to Ethereum futures ETFs, despite Ethereum’s significant narratives like deflation, Layer 2 solutions, and staking derivatives, suggests that the market’s response to Ethereum-focused ETFs might not mirror the investor response seen for Bitcoin’s ETFs.
However, several upcoming upgrades and potentially bullish news could see Ethereum performing better than Bitcoin in 2024. Here are three pivotal reasons Ethereum could experience explosive growth relative to Bitcoin.
1. Technological Advancements and Upgrades Could Drive Ethereum’s Performance In 2024
Ethereum performs better than Bitcoin in 2024 because of its continuous technological evolution. The Ethereum network will undergo the EIP-4844 upgrade in 2024, introducing Protodanksharding and scaling enhancements for layer-two networks.
This upgrade is a game-changer, poised to significantly improve Ethereum’s scalability, reduce network congestion, and lower transaction fees.
The upgrade aims to tackle longstanding issues within the Ethereum network, such as high transaction costs and low throughput, potentially boosting its transaction capacity to 100,000 transactions per second.
Hence, the development could position Ethereum for significant gains, especially considering the broader anticipation of a bullish market in 2024 for the crypto space, thereby improving Ethereum’s performance versus Bitcoin in 2024
Such improvements enhance Ethereum’s utility and efficiency and bolster its appeal to developers and users alike, potentially driving up its value relative to Bitcoin.
2. Anticipation of Ethereum ETF Approvals
The prospect of Ethereum ETFs receiving regulatory approval in the US could create more bullish tailwinds for Ethereum’s future. Following the successful launch of Bitcoin ETFs, market participants regard Ethereum as the next in line for a spot-based ETF in the US.
By investing in the actual cryptocurrency, a spot ETF enables investors to gain exposure without direct ownership, potentially attracting a wave of institutional and retail investment into Ethereum.
The anticipation of Ethereum ETFs and their potential to simplify investment in ETH could help increase demand and higher prices, potentially boosting Ethereum’s performance against Bitcoin.
3. Dominance in the DeFi and NFT Sectors
Ethereum’s continued dominance in decentralized finance (DeFi) and non-fungible token (NFT) sectors remains critical in its potential outperformance against Bitcoin.
Despite the emergence of competitors, Ethereum retains its status as the world’s leading smart contract blockchain, hosting a vast majority of DeFi applications and NFT projects. This dominance underscores Ethereum’s fundamental strength and could be key to outperforming Bitcoin in 2024.
With the upcoming EIP-4844 upgrade poised to enhance its capabilities further, Ethereum’s foundational position in DeFi and NFTs could drive its value and performance against Bitcoin to new highs in 2024.
A combination of technological advancements, regulatory developments, and Ethereum’s enduring significance in the DeFi and NFT markets could drive Ethereum’s performance against Bitcoin in 2024.
These factors could result in a transformative year for Ethereum, redefining its performance versus Bitcoin.
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