Here’s Why 2024 Could Be Optimistic for Ethereum

Ethereum has not achieved significant growth in the recent rise of the crypto market, which has primarily focused on Bitcoin, but there could be major changes and a shift in investor sentiment towards Ethereum in 2024, according to some analysts.

Ethereum has already pulled back by about eight percent from its peak value in 2023, and is overshadowed by Bitcoin and the potential approval of a spot ETF.

However, nothing has changed, and the fundamentals of Ethereum remain strong. The price has also more than doubled from its cycle low of just below $1,000 in June 2022.

On December 20, Ethereum advocate and educator Anthony Sassano published his ‘modest bullish case’ for 2024.

Several catalysts could prompt Ethereum to outperform even Bitcoin in 2024, although it failed to do so in 2023.

He noted the potential for the approval of a spot Ethereum ETF in 2024. However, on December 18, the SEC postponed its decision on the Hashdex Nasdaq Ethereum ETF and the Grayscale Ethereum Futures ETF. It is likely to test the waters with Bitcoin products before approving a spot ETF based on Ethereum.

The Strength of Tokenization

The Dencun upgrade will be implemented in March or April. It announces scaling improvements with EIP-4844, which also reduces transaction fee costs on layer-2 blockchains.

Layer-2 activity has recently surged and is currently at an all-time high. According to L2beat, the total value locked (TVL) in the ecosystem is a record $16 billion.

Sassano also noted that non-EVM layer-2s such as Eclipse and Fluent are launching, bringing new types of applications and developers. Crypto gaming will also predominantly be based on the L2 ecosystem, he said.

He added that the wallet user experience will continue to improve rapidly and ‘bring millions of new users into the Ethereum ecosystem’.

Finally, the tokenization of real-world assets (real world assets) is gaining traction, bringing more ‘old-world’ financial products onto the blockchain.

Ethereum may not currently be in the spotlight, but underestimating it historically has never been a good strategy when it comes to Ethereum.

– It’s nothing new to face a crowd that is pessimistic about Ethereum, although I find it amusing that this is the case considering how much Ethereum has achieved in just the last 3 years and how much growth potential Ethereum still has with a very long-term future ahead – wrote Sassano.