Morgan Stanley analyst pointed out that EIP-4844 or Protodanksharding will effectively improve Ethereum’s performance by 2024. In addition, the bullish factors of Bitcoin (spot ETF and halving) have already been priced in. It is predicted that Ethereum’s performance in 2024 will surpass Bitcoin and other cryptocurrencies.
Index of this article:
How Protodanksharding technology assists Ethereum
Bullish factors of Bitcoin have been fixed
Disappointment in the development of the DeFi field
According to Morgan Stanley’s latest prediction report on the 13th, analyst Nikolaos Panigirtzoglou explained that Ethereum’s performance in 2024 will surpass Bitcoin and other cryptocurrencies.
Further reading:
Ethereum Cancun Upgrade: How can EIP4844’s Blob reduce costs by 100 times?
Protodanksharding is the first step for Ethereum to move towards more efficient Danksharding sharding technology. Its core is to introduce data blobs that allow temporary data to be attached to blocks, thereby accommodating more data without being permanently stored or accessed by the EVM.
This upgrade can effectively assist Layer2 networks such as Arbitrum and Optimism, as the technology provides additional temporary data space, which can effectively increase network throughput and reduce transaction fees for Layer2 networks.
Therefore, it essentially improves the efficiency of Layer2, but does not change the size of Ethereum blocks.
At the same time, Morgan Stanley analysts added that since the bullish factors of Bitcoin spot ETF and the upcoming Bitcoin halving have been well-known in the market, the bullish factors of BTC have been largely absorbed by the current market.
In other words, they believe that the recent rise in Bitcoin may have already anticipated the future positives, and the next period may not be as strong as the past few months.
Morgan Stanley analysts believe that the current progress in the DeFi field is quite disappointing because its integration with traditional finance is progressing slowly, and they believe that this is the key core for transitioning from cryptographic applications to practical applications.
Finally, the analyst mentioned that although the venture capital funding for the cryptocurrency market has improved by the end of 2023, the current situation has not fully recovered. If this improvement can continue into the first quarter of 2024, it will indicate the end of the cryptocurrency winter.
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