Bitwise’s Chief Investment Officer, Matt Hogan, has identified nine key factors that could help Ethereum (ETH) gain traction in the second half of 2024.
1. Ethereum ETF: There is high anticipation for the launch of ETH ETF trading, which could significantly increase demand.
2. Limited supply: The limited net issuance of Ethereum may have a positive impact on its value.
3. Regulatory clarity: Recent events, including the termination of the U.S. Securities and Exchange Commission’s (SEC) investigation into ConsenSys, suggest that regulatory clarity could improve, benefiting the 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 improvements in user interface: The emergence of influential applications, especially those enhancing user experience, will further increase throughput. He pointed out that the Base’s second-layer scaling solution is a significant contributing factor.
6. Corporate sponsorship: Major companies like BlackRock and Grayscale Investments are promoting institutional adoption of blockchain technology. Ethereum may be the preferred choice for these institutions, especially through the spot Ethereum ETF.
7. Cycle timing: Hogan believes that Ethereum’s performance aligns with cyclical trends, signaling favorable periods ahead.
8. Macro conditions: Broader economic conditions may provide support for the dynamics of the ETH market.
9. November presidential election: Hogan suggests that the upcoming U.S. presidential election could serve as a potential catalyst for more cryptocurrency adoption 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 to ETF approval or SEC dropping its Consensys lawsuit
* Significant throughput increase; market not…
– Matt Hougan (@Matt_Hougan)
June 21, 2024
