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According to an analyst, price forecasts for 2024 suggest that there is a possibility for Ethereum to surpass Bitcoin in terms of performance.
Summary
Some price predictions for 2024 see Ethereum outperforming Bitcoin
It wouldn’t be a surprise if the second cryptocurrency by market capitalization, Ethereum, could succeed in outperforming (in terms of price) the queen of the crypto market, Bitcoin.
And in fact, according to analyst André Dragosch, head of research at ETC Group, this situation could occur in 2024.
Ether could outperform bitcoin in 2024, analyst says https://t.co/zPdpnkikif
— The Block (@TheBlock__) December 27, 2023
“Ether could surpass bitcoin in 2024, according to an analyst”
In practice, in the report dedicated to price forecasts for 2024, Dragosh argues that Ethereum could be favored for its technological advancements, becoming the leading smart contract platform.
Specifically, Dragosh would have said:
“Ether has underperformed bitcoin in the last 12 months, but it could outperform bitcoin in the next 12 months”
Dragosh’s price predictions for 2024: Ethereum favored over Bitcoin
In his price forecast analysis for 2024, Dragosh mentioned factors that encourage the appreciation of Ethereum (ETH).
Among the many, there would be the deflationary “combustion mechanism” introduced with the Improvement Proposal EIP-1559 in August 2021.
Not only that, another factor that favors Ethereum over Bitcoin is also the attraction of ETH staking returns.
In this sense, Dragosh stated the following:
“The net issuance of Ether amounts to minus 1.1% per year, as currently about 1.84% is burned per year. Traditional investors can think of staking yield as a kind of stock dividend, while the burning rate can be considered as a stock buyback yield.”
In general, Dragosh argues that by 2024, Ethereum could show a strong mean reversion trend, returning to its average relative performance compared to Bitcoin.
After all, with the exception of 2023, ETH has consistently outperformed BTC since its inception in July 2015.
Will Ethereum outperform Bitcoin? Coinbase’s 2024 price predictions
Quoting another report, the Crypto Market Outlook by Coinbase, here too it seems that there is an expectation that the performance of Bitcoin compared to Ethereum will undergo a mean reversion in 2024.
And indeed, Coinbase talks about 2023, indicating how ETH has underperformed BTC for most of the year, with the decline in Ethereum’s dominant position in the total crypto market, which has dropped from 20.4% at the beginning of the year to 17.9% on November 30, 2023.
Despite this, by 2024, here’s what Coinbase writes:
“Although we believe that the relative discount of ETH could be the precursor of some mean reversion in 2024, the softer fundamentals of the network so far have hindered a significant correction, even though the prospects for ETH are stable with one or more ETH spot ETFs potentially on the horizon in the United States.”
Ethereum remains one of the most important smart contract platforms for cryptocurrencies. But the focus on bitcoin in 2023 has caused Ethereum’s dominance to drop to 18% of the total cryptocurrency market.”
JPMorgan’s forecasts
Even the banking giant JPMorgan has entered the field to release its 2024 forecast for Bitcoin and Ethereum, with its analysts seeing ETH surpassing BTC.
In these forecasts, it is argued that a potential network upgrade will contribute to increasing Ethereum’s market share.
Specifically, JPMorgan analysts point to the upcoming EIP-4844 or Protodanksharding upgrade as the catalyst for Ethereum’s growth. In fact, the proposal aims to reduce transaction costs and increase the number of transactions per second on the blockchain.
By strengthening the network, the banking giant expects a market share recovery for ETH by 2024, and its re-affirmation within the crypto ecosystem.