Panigirtzoglou highlighted Ethereum’s advantage with the upcoming EIP-4844 update, also known as “proto-danksharding”. This update is expected to enhance the scalability, performance, and activity of the Ethereum network:
“We anticipate Ethereum to reclaim its market share in the crypto ecosystem next year. The EIP-4844 update, scheduled for the first half of 2024, will serve as a significant catalyst for this growth. It will improve the Ethereum network’s scalability, performance, and overall functionality.”
Proto-danksharding involves the implementation of a lightweight version of sharding in the Ethereum network. Rather than dividing the network into separate sharding networks, this technology creates temporary “data bubbles” that are attached to blocks and store data for a specific period of time.
The JPMorgan analysts also expect growth across the entire cryptocurrency industry due to the upcoming Bitcoin halving and the potential approval of cryptocurrency spot ETFs in the United States. However, they advise cautiousness when investing in cryptocurrencies, particularly in the decentralized finance (DeFi) sector. Panigirtzoglou expressed disappointment in DeFi’s inability to effectively compete with traditional finance.
Notably, JPMorgan CEO Jamie Dimon recently expressed his personal stance on Bitcoin and digital assets, stating that he would ban their use if he were in the American government’s position.