Ether could outperform bitcoin in 2024, according to ETC Group Head of Research André Dragosch, who noted that the potential reversal of ether's relative underperformance compared to bitcoin in 2023 will be propelled by its technological advancements and Ethereum's position as a leading smart contract platform.

"Ether underperformed bitcoin over the past 12 months, however, ether could outperform bitcoin over the coming 12 months," Dragosch told The Block. 

Ether price appreciation

In a recent ETC Group report sent to The Block, Dragosch pointed to factors that would encourage ether's price to appreciate, including the deflationary "burn mechanism" introduced with the Ethereum Improvement Proposal EIP-1559 in August 2021.

Dragosch added that this reduction in ether's supply, …