According to André Dragosch, Head of Research at ETC Group, Ether might surpass Bitcoin in performance in 2024, driven by technological advancements and Ethereum’s status as a leading smart contract platform.
While Ether has underperformed Bitcoin in the past 12 months, Dragosch suggests a potential reversal in the next year.
Factors contributing to Ether’s price appreciation, as outlined in an ETC Group report, include the deflationary “burn mechanism” introduced with Ethereum Improvement Proposal EIP-1559 in August 2021.
The reduction in Ether’s supply, coupled with attractive staking yields, may position it to outperform Bitcoin, with a net supply issuance rate of minus 1.1% per annum.
Despite these factors, David Schwed, COO of Holborn, believes Bitcoin’s established role and stability could lead it to potentially outperform Ether in the long term.
