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

CoinVoice · 2026-01-22T14:55:07+00:00

JPMorgan stated in a report that the Ethereum Fusaka upgrade in 2025 has temporarily increased network activity, but doubts its sustainability, as historical upgrades have failed to achieve long-term growth. Factors such as competitive pressure and the cooling of speculative enthusiasm continue to impact Ethereum.

CoinVoice

2026-01-22 14:55:07

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According to the latest information from CoinVoice, CoinDesk reports that JPMorgan stated in a report sent to clients on Wednesday that the Ethereum Fusaka upgrade completed in 2025 significantly boosted network activity in the short term.

The upgrade increased the data capacity per block, effectively reducing transaction fees and driving up the number of transactions and active addresses. However, the bank expressed skepticism about the sustainability of this activity rebound. The report suggests 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 like Base and Arbitrum, as well as competing public chains such as Solana.

At the same time, the speculative frenzy related to NFTs and Meme coins has waned. Additionally, the migration of major applications like Uniswap to dedicated chains has led to capital outflows. These factors collectively resulted in decreased 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.

ETH0,48%

ARB0,84%

SOL0,73%

MEME-2,73%

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