Why will the price of Ethereum witness significant growth in 2024?
In the recent surge in the cryptocurrency market, which was mainly focused on the price of Bitcoin, Ethereum did not receive much attention. However, some analysts believe that there are many reasons for the significant growth of this digital currency in 2024.
To Report BInCrypto, the price of Ethereum has so far fallen by about 8% from its 2023 high and, like Bitcoin, is awaiting the possible approval of ETFs.
However, nothing has changed and the fundamental indicators of this digital currency are still stable. Ethereum has more than doubled in value since reaching its lowest price of less than $1,000 in June 2022.
Anthony Sassano, investor and fan, today published his reasons why Ethereum is bullish in 2024.
He believes that, unlike 2023, several catalysts could lead to an uptrend for Ethereum and even better performance of the asset than Bitcoin.
Sassano hinted at the possibility of Ethereum ETFs being approved in 2024. Of course, the United States Securities and Exchange Commission on December 18 (December 27) postponed its decision on approving or rejecting the Ethereum Hashdex ETF and Grayscale Ethereum Futures ETF.
The “Dencun” update will also be implemented in March or April. This update will reduce the gas cost of layer 2 networks by implementing the Ethereum Improvement Proposal 4844 (EIP-4844), which will increase the scalability of this network.
The activity of layer 2 solutions has recently increased and is currently at its highest level. According to the L2beat report, the value of locked capital in the entire ecosystem has reached a record of $16 billion.
Sassano noted that Layer 2 networks that don’t rely on the Ethereum virtual machine, such as Eclipse and Fluent, are launching, which will enable new types of developers and applications. Web 3 games will also be mainly based on the layer 2 ecosystem.
He added:
With the rapid improvement of the user experience of digital currency wallets, millions of new users will enter the Ethereum ecosystem.
Finally, the trend towards tokenization of real-world assets is on the rise, offering more financial products than the traditional market as such.
With the stop of the upward trend of the digital currency markets, the price of Ethereum has decreased by 1.3% in the last 24 hours and at the time of writing this report, it is fluctuating in the range of $2,200.
The price of Ethereum may not have increased significantly so far, but Sassano concluded:
Coping with a dwindling population of Ethereum investors is not a new issue, although given what Ethereum has achieved over the past three years and its long-term growth potential, it is ludicrous to me why it remains so.