A new report by investment firm VanEck lays out 15 projections for the cryptocurrency landscape 2024. The report dives into the key possibility of whether Ethereum can dethrone Bitcoin.
Contradictory to the notion, the report mentioned that Ethereum will fall short of “flipping” Bitcoin next year despite robust gains.
The analysis sees Bitcoin retaining its position as the largest cryptocurrency by market capitalization. Bitcoin may also attract state-level support from countries like Argentina. The report also points to Bitcoin’s clear regulatory status and higher energy consumption. This is forecast to attract interest from quasi-state entities in regions such as Latin America, the Middle East, and Asia.
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As the fifth country to sponsor Bitcoin mining at the state level, Argentina, through its state-owned energy giant YPF, is signaling interest in mining digital assets.
Ethereum outlook is still strong
Despite the outlook, Ethereum is expected to outrun mega-cap tech stocks massively. VanEck believes Ethereum will surge post-halving when Bitcoin miners’ rewards are cut in half. This historically triggers a renewed Bitcoin price surge, with profits flowing into altcoins afterward.
However, despite beating major stocks, Ethereum won’t overtake Bitcoin, as speculation of “flippening” suggests. While some likelihood of ETH becoming more valuable in daily trade volume exists, Bitcoin is still seen as maintaining its market cap lead.
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The report mentions that Ethereum may lose share to other smart contract platforms like Solana with clearer scaling roadmaps. The report also covers other predictions, including Bitcoin’s possibility of hitting a high in 2024, NFT activity to resurrect, and others.