JPMorgan: The surge in activity triggered by Ethereum's Fusaka upgrade may be difficult to sustain

ETH2,11%
ARB2,97%
SOL1,55%
MEME2,27%

PANews January 22 News, according to a report by CoinDesk, JPMorgan stated in a report sent to clients on Wednesday that the Ethereum Fusaka upgrade completed in December 2025 significantly boosted network activity in the short term. The upgrade increased the data capacity per block, effectively reduced transaction fees, and drove an increase in transaction counts and active addresses. However, the bank expressed skepticism about the sustainability of this activity rebound. The report believes that historical experience shows that Ethereum’s past upgrades have not resulted in sustained growth in network activity. Currently, Ethereum faces structural pressures from Layer 2 networks such as Base and Arbitrum, as well as competing public chains like Solana. At the same time, the speculative frenzy related to NFTs and Meme coins has waned, and the migration of major applications like Uniswap to dedicated chains has led to capital outflows. These factors collectively have led to a decrease in fee burning on the Ethereum mainnet, an increase in ETH supply, and a decline in the total value locked (TVL) measured in ETH. Although the Fusaka upgrade provided a short-term boost, these ongoing challenges cast a shadow over its long-term growth prospects.

Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.

Related Articles

BTC & ETH Entering a New Era? Analysts Say Yes — This Platform Is Already Paying Real BTC Rewards

Grayscale called it the “dawn of the institutional era.” Bitwise predicted Bitcoin will break its four-year cycle and set new all-time highs. Bitcoin Suisse published a scenario where Bitcoin approaches $180,000 and Ethereum reaches $8,000 on the back of Fed rate cuts and accelerating institutiona

CryptoPotato4m ago

Ethereum Teams Propose ‘Economic Zone’ to Unify Layer-2 Ecosystems

A new collaborative framework proposed by developers from Gnosis and Zisk, with support from the Ethereum Foundation, aims to knit Ethereum’s sprawling layer-2 ecosystem into a more cohesive execution fabric. The initiative, dubbed the Ethereum Economic Zone (EEZ), envisions cross-rollup

CryptoBreaking6m ago

ETH drops 0.59% in 15 minutes: whale transfers to exchanges and increased futures short positions are the main drivers

2026-03-30 23:00 to 2026-03-30 23:15 (UTC), ETH’s return rate over 15 minutes was -0.59%. The price range was between 2013.89 and 2033.15 USDT, with a swing of 0.95%. During this period, market volatility was significant, attention increased, and it reflected the market’s high sensitivity to short-term abnormal moves. The primary driver behind this abnormal movement is a whale address transferring a large amount of ETH to a certain exchange platform. Specifically, address 0xb5Ab transferred 50,000 ETH for the first time in 9 years, and the market widely interpreted it as a substantial increase in potential sell pressure.

GateNews20m ago

Ethereum Defies Crowd Expectations: Here’s Why ETH May Crash Even With a US-Iran Deal

While the war between the United States (supported by Israel) and Iran has dragged on for almost a month, recent indications hint that a de-escalation might be on the horizon. Some industry participants believe that an eventual truce could act as a catalyst for the cryptocurrency market, but one po

CryptoPotato25m ago

Ethereum (ETH) on the Edge: Critical Level Stands Between New Bull Run and a Major Crash

While the second-largest cryptocurrency has registered a significant rebound over the past month, it remains at risk of plummeting to drastically low levels during this cycle. On the other hand, some important indicators suggest that the worst might be over and the price could be gearing up for a m

CryptoPotato1h ago
Comment
0/400
No comments