Bitwise CIO Unveils 9 Tailwinds for Ethereum’s Growth in H2 2024


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Matt Hougan, the Chief Investment Officer at asset management firm Bitwise, has shared nine significant tailwinds that could drive Ethereum’s (ETH) adoption and growth in the second half of 2024. According to a post, one of the primary factors he mentions is the anticipated surge in demand resulting from the launch of Ethereum Exchange-Traded Funds (ETFs) trading.

Tailwinds to Watch Out For

Secondly, Hougan highlighted the constrained supply market, confirming this metric is limited to zero net issuance. He emphasizes improved regulatory developments. Clarity and favorable regulation can significantly enhance investor confidence and participation in the Ethereum ecosystem.

Similarly, the scalability improvements from Ethereum 2.0 upgrades are critical. These upgrades are designed to enhance the network’s transaction processing capabilities, reducing congestion and lowering transaction fees, which should foster broader adoption. Hougan is convinced that Base, Coinbase L2 scaling solution, has significantly contributed to enhancing the user experience on Ethereum. 

Tailwinds Could Shape Adoption and Growth of ETH

Hougan underscores the importance of Ethereum’s strong developer community. This community continually innovates and improves the network, ensuring Ethereum remains at the forefront of blockchain technology. Also, partnerships with major corporations and financial institutions like BlackRock and Grayscale Investments are pivotal. Such collaborations can lead to increased adoption and real-world use cases for Ether.

In summary, Hougan highlighted cycle timing, macro conditions, and the upcoming presidential election as other tailwinds. These he believes will create a self-reinforcing cycle of adoption and growth.

According to CoinMarketCap, ETH is trading at $3,506.30, a 0.04% increase over the past 24 hours, after falling by 0.28%.

Ethereum Reaches New ATH in Transactions Per Second 

Some days ago, the Ethereum network achieved a novel milestone, hitting an all-time high (ATH) in transactions per second. The industry cited a huge increase in activity on an Ethereum layer-3 network, as the reason for this milestone.

According to data from L2beat, the protocol’s scaling networks, including layer-2 and layer-3 blockchains, recorded 246.18 TPS. This means 21.2 million transactions were executed within a day, reflecting the user-friendly and robust scalability enhancements recently included in the Ethereum network.

A substantial portion of these transactions on Ethereum, over 41%, occurred on Xai, a newly emerging layer-3 scaling solution focused on gaming applications.

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