Ethereum succeeded in recuperating some losses registered in 2022 throughout the bygone year, witnessing speculations that it could hit as high as $3000 and registering new monthly highs unreached in April 2022. Given the charts and crypto exchanges registering such high demand and huge performance growth, the latter of which has catapulted Ethereum into the limelight, it’s only common to ask yourself how to buy Ethereum the best way to profit from the sagacious move later.
The technology serving multiple use cases and more than Bitcoin’s, including online payments, dApps running, ETH staking, NFTs exchange tool, and more, keeps tech buffs invested. Even if it’s far from valuing the astronomic $4,800 recorded in November 2021, some analysts deem it to keep rising throughout the year and hit new peaks in the subsequent months.
So, can optimistic beliefs come true? What’s fueling hopefulness and confidence in Ethereum’s 2024 performance and the belief that it will drive high financial rewards if accumulated while still decently priced?
EIP-4844 – the new change-maker poised to occur in Q2
Ethereum secures its place as the core of a decentralized economy, playing a vital role in DeFi thanks to its smart contract practicability and more. Facilitating both decentralized finance (DeFi) and decentralized applications (DApps) and having one of the most robust communities backing it, developments and updates in the system have never ceased. Thanks to its large developer community, it can proudly boast a track record of functionality and be subject to constant updates to boost the network’s capabilities.
Remarkably, these modifications are why Ethereum could go on a bull run in 2024. Starting in the year’s second half, the network will release the long-awaited upgrade that will reduce transaction fees and boost throughput, among other advantages, namely EIP-4844. This adjustment could turn the tables in Ethereum’s favor regarding its popularity and practicality, as Solana could go second after it in terms of efficiency. To date, Solana overtakes Ethereum thanks to lower fees and the faster version speed compared to Ethereum. But with more scalability and efficiency in Ethereum, it could grow to surpass the now-dominant network.
Furthermore, since a cryptocurrency’s value is partly associated with its usability, the new upgrade brings about good fortune for Ethereum and an optimistic lookout. And at last, it could make one of the most impactful upgrades to represent a milestone in Ethereum’s history. To sum up, Ethereum’s upcoming updates have the power to cement it as the top smart-contract blockchain, crushing competition.
Sepolia and Holeski could follow
After the method of proto-dank sharding aimed at reducing transaction costs for layer-2 blockchains and adding capacity for data availability is done and successfully implemented, a new set of improvements will follow. testnetTo date, the “Dencun” upgrade has been released but failed in being finalized on test net due to potential reasons such as insufficient developer participation or lack of software upgrades.
Despite slight inconveniences, the project is unfolding and ushering in new updates, namely Sepolia and Holeski. Dencun will make history as the most prominent upgrade since Shapella was released last March and made staked Ether withdrawals possible. That achievement symbolized the second stage for the blockchain’s shift to a proof-of-stake one, making the energy strenuous proof-of-work history.
New roadmap goals made known
As expected, on the last day of 2023, Ethereum co-founder Vitalik Buterin presented the new objectives tabled on Ethereum’s roadmap for 2024 on the X (ex-Twitter) platform, spelling out info on the activities and upgrades awaiting the network. From a list of charts exhibited by the co-founder, six main components are to be sustained, some of which have already been launched. Ethereum is bound to sustain the Dencun hard fork upgrade in Q1 of the year, having already mapped out a schedule for the stages’ releases. If there aren’t any major impediments, the upcoming timeline for the public testnet should include the following:
- Goerli on 17th of January
- Sepolia on 30th of January
- Holesky on the 7th of February.
Those will mark the last additions to the testing program. They will be a vital phase of activating the Dencun strategy by the end of the year’s first month, representing a colossal leap in its technical capacities.
Prague/Electra upgrade left in the air at the moment
The main devs of Ethereum are discussing a new future update: the Prague/Electra upgrade. It hasn’t received a name yet, but the community behind Ethereum is considering it, witnessing the battle being born between large-scale core feats in the spotlight or the pursuit of upgrades aimed at effectuating smaller yet numerous adjustments. While the former could take a year to realize, the latter may be completed in Q3 or Q4 of 2024.
Basically, this year will mark a period filled with improvements and upgrades in Ethereum, awaiting important anticipated proposals such as:
- Proto-Danksharding: EIP-4844
- Account Abstraction: ERC-4337, ERC-6900
- Transient Storage Opcodes: EIP-1153
- Beacon Block Root Commits: EIP-4788
- MCOPY Opcode: EIP-5656
- Restrict SELFDESTRUCT: EIP-6780.
The waiting for the first ETH ETF in the U.S.
The commencement of a first spot Bitcoin ETF (exchange-traded fund) in the U.S. made a lot of noise in recent years in the media, across crypto communities, and in more spheres, causing misinformation to spread and confusion to capture investors worldwide. While the SEC has been postponing a decision in this regard for years, the filling companies, including HashDex, Grayscale, BlackRock, and more, have been waiting and reupdating their submissions.
Now that there’s more clarity regarding the spot BTC ETFs, the stage is being seized by the second-best cryptocurrency to date, Ethereum. The news about the potential approval of a BTC ETF has caused a lot of volatility in the market. Investors are keeping tabs on Ethereum to see how dynamics move and how the heavyweight’s destiny will affect ETH.
After years of waiting for the SEC’s positive response, about a dozen BTC ETFs started to trade this month. Now, speculators are looking at Ethereum as it ought to be the subsequent candidate for a similar ETF endorsement. Plus, they have some lessons to draw and learn from Bitcoin’s experience. Keeping lengthy volatility exposure on the pronouncement’s day could involve some risks. The prices naturally grow the day before the announcement, yet volatility starts to grow as the day inches to a closing. A short vega position might be feasible for investors looking to protect their assets, as history has proven with Bitcoin and gave insights into what may follow.
Ethereum’s poised to seize the limelight this year, undergoing plenty of upgrades and hitting new milestones while investors keep tabs on a potentially rising price.
