Analysts at JPMorgan Chase said that the crypto market generally remains "cautious" about the coming year, but that Ethereum may outperform Bitcoin and other cryptocurrencies in 2024. JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a report on Wednesday: "We believe that Ethereum will re-establish itself next year and regain market share in the crypto ecosystem. The main catalyst is the expected growth in EIP-4844 upgrade in the first half of 2024. This upgrade is likely to take a bigger step in improving Ethereum network activity, helping Ethereum outperform." JP Morgan analysts reiterated that this upgrade is good for Arbitrum and L2 networks such as Optimism are particularly beneficial as it provides additional temporary data space that can increase network throughput and reduce transaction fees on the Ethereum L2 network. JPMorgan analysts also said that factors seen as positive for Bitcoin next year, including the potential approval of a spot ETF and the upcoming halving, are already priced in. The analysts concluded: “Given that the current ratio of Bitcoin price to production costs is about 2 times, this means that the Bitcoin halving event in 2024 has basically been reflected in the price.”