In the world of cryptocurrencies, Ethereum's performance has been underwhelming since its Shanghai upgrade in April 2023, according to JPMorgan (NYSE:JPM) analysts on Wednesday. The top-tier financial institution expressed disappointment with the pace of Ethereum's progress after the merger, noting a 12% fall in daily transaction count over the network and a 20% decrease in daily active addresses. This perceived lackluster performance comes despite the steep drop in Ethereum's energy consumption due to its shift to a proof-of-stake network a year ago, which also resulted in an overall reduction in issuance of new ETH, typically viewed as a bullish factor.
However, some industry experts argue that focusing only on Ethereum might provide a too narrow perspective. Akash Mahendra, director of Haven1 Foundation, suggests that overlooking the rapid growth of layer-2 networks that operate atop Ethereum could skew perception. These networks have absorbed many transactions that would otherwise occur on the layer-1 blockchain, significantly improving scalability and alleviating congestion on the mainnet.
Despite these improvements, Ethereum's transaction activity has been so weak lately that the supply curve has reverted to being inflationary. Additionally, Ethereum developers appear to have fallen behind schedule with their next big upgrade, known as Dencun. Christine Kim from Galaxy wrote last week that if developers cannot launch the upgrade on a test network before Devconnect - an Ethereum-focused conference set for mid-November in Istanbul - they are unlikely to activate Dencun this year.
Meanwhile, JPMorgan analysts have hinted at strong confidence in Bitcoin Spark (BTCS), potentially indicating a shift of focus within the crypto space. BTCS uses innovative technology and a unique Proof-of-Process (PoP) consensus mechanism that utilizes users' rented processing power for mining and transactions. This approach enhances security and decentralization while addressing energy efficiency concerns associated with Proof of Work protocols.
The Bitcoin Spark application simplifies trading, storage, mining, and rewards distribution, positioning BTCS as a potential game-changer in the crypto world. The app moderates miner influence, particularly from large mining facilities, and boosts security by reducing the risk of a "51% attack," thereby enhancing network integrity. After its network launch, Bitcoin Spark will open to dApps and wallet apps, with its app serving as a wallet for the Bitcoin Spark network and other EVM-compatible networks.
Currently in phase six of its ICO, BTCS is offering tokens at an attractive $2.75 price with an 8% bonus. This innovative project is reshaping the crypto landscape and offering substantial returns of up to 393% to phase six investors.
On the other hand, Ethereum's resilience during market downturns and upcoming network enhancements are expected to bolster its short and long-run value. Despite JPMorgan's concerns about a slow upward trend, analysts remain optimistic about Ethereum's potential to recover to its peak 2021 value and possibly achieve new all-time highs in a market upswing. The estimated 24-hour price for ETH stands at $1594, with predictions indicating it could surpass $2000 by 2024.
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