Express
JPMorgan: Increased Activity Triggered by Ethereum Fusaka Upgrade May Not Be Sustainable
Summary: According to CoinDesk, JPMorgan stated in a report sent to clients on Wednesday that the Fusaka upgrade completed by Ethereum in 2025 significantly increased network activity in the short term. The upgrade, which increased the data capacity of each block, effectively lowered transaction fees and led to an increase in transaction volume and active addresses. ...
According to CoinDesk, JPMorgan stated in a report sent to clients on Wednesday that the Fusaka upgrade completed by Ethereum in 2025 significantly increased network activity in the short term.
The upgrade, which increased the data capacity of each block, effectively lowered transaction fees and led to an increase in transaction volume and active addresses. However, the bank expressed doubts about the sustainability of this activity rebound. The report suggests that historical experience shows that previous Ethereum upgrades have not led to sustained growth in network activity. Currently, Ethereum faces structural pressure from Layer 2 networks like Base and Arbitrum, as well as competing public chains like Solana. Additionally, the speculation frenzy related to NFTs and meme coins is waning, and the migration of major applications like Uniswap to dedicated chains is causing capital outflows. These factors have collectively 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) in ETH terms. Despite the short-term boost from the Fusaka upgrade, these ongoing challenges cast a shadow over its long-term growth prospects.
Tags:
Link: JPMorgan: Increased Activity Triggered by Ethereum Fusaka Upgrade May Not Be Sustainable [Copy]
