Ethereum, the second-largest cryptocurrency by market capitalization, is poised for significant growth in the second half of 2024. Bitwise CIO Matt Hougan has identified nine crucial tailwinds that will shape the adoption and growth of Ethereum.

Key Tailwinds

1. Ethereum ETFs: The launch of Ethereum ETF trading is expected to generate significant demand in the market. Bitwise is one of the firms awaiting the U.S. SEC to approve the S-1 registrations for trading, with CEO Hunter Horsley believing that the approval is close and trading might start before July 4.

2. Constrained Supply: The supply of Ethereum is limited to zero net issuance, which is a significant factor in its growth.

3. Regulatory Clarity: The SEC has dropped its 14-month investigation of Ethereum, indicating that regulatory clarity is on the horizon. This will lead to more stability and growth in the Ethereum ecosystem.

4. Improved Throughput: The upcoming Dencun upgrade and the rise of Layer 2 solutions will significantly improve the throughput of the Ethereum network.

5. Killer Apps: The development of killer apps that utilize Ethereum's blockchain will contribute to improved throughput and adoption.

6. Corporate Backers: Major corporate backers like BlackRock and Grayscale Investments are championing the adoption of blockchain technology, which will lead to increased institutional adoption of Ethereum.

7. Cycle Timing: The timing of the Ethereum cycle is favorable for growth, with the current bearish trend expected to reverse soon.

8. Macro Conditions: Favorable macroeconomic conditions will also contribute to Ethereum's growth.

9. November Presidential Election: The upcoming presidential election in the United States will serve as a major catalyst for Ethereum adoption.

Conclusion

Ethereum is poised for significant growth in the second half of 2024, driven by these nine key tailwinds. The launch of Ethereum ETF trading, constrained supply, regulatory clarity, improved throughput, killer apps, corporate backers, cycle timing, macro conditions, and the November presidential election will all contribute to Ethereum's growth and adoption.