Bitwise’s Chief Investment Officer Matt Hogan has identified nine key factors that could help Ethereum (ETH) in the second half of 2024.
1. Ethereum ETF:
Expectations are high for the introduction of ETH ETF trading, which could significantly increase demand.
2. Limited Supply:
The limited net issuance of Ethereum could have a positive impact on its value.
3. Regulatory Clarity:
Recent events, including the termination of the U.S. Securities and Exchange Commission (SEC) investigation into ConsenSys, suggest that regulatory clarity could improve, which would benefit blockchain.
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4. Performance Improvements:
Key events such as the update “London” and the emergence of second-layer solutions are expected to increase Ethereum transaction throughput.
5. Significant Improvement in User Interface:
The emergence of influential applications, especially those that enhance user experience, will further increase throughput. He noted that Base’s second-layer scaling solution is a key facilitator.
6. Corporate Sponsors:
Major companies such as BlackRock and Grayscale Investments are pushing for institutional adoption of blockchain technology. Ethereum may be the preferred choice for these institutions, especially through spot Ethereum ETFs.
7. Cycle Timing:
Hogan believes that Ethereum’s performance aligns with cyclical trends, indicating favorable periods in the future.
8. Macro Conditions:
Broader economic conditions may provide support for the dynamics of the ETH market.
9. November Presidential Election:
Hogan stated that the upcoming U.S. presidential election could be a potential catalyst for more adoption of cryptocurrencies to help Ethereum.
Second-half tailwinds for ETH:
* Major new demand: Pending ETF approval
* Limited supply: Net issuance limited to zero
* Improved regulatory clarity: Just look for ETF approval or SEC dropping its Consensys lawsuit
* Significant increase in throughput; the market is not…
– Matt Hogan (@Matt_Hougan)
June 21, 2024
