Ethereum Network Activity Remains Low Despite Recent Upgrades, Says JPMorgan
JPMorgan's research highlights stagnant activity on the Ethereum blockchain despite recent upgrades. Key points include:
- No significant increase in daily transactions or active addresses after upgrades.
- Total value locked (TVL) increased between the Dencun and Pectra upgrades, attributed to more lending and borrowing on decentralized exchanges.
- The increase in TVL appears lower in dollar terms compared to the rise in the ether token.
- The Pectra upgrade, activated on May 7, aims to enhance staking, wallet functionality, and efficiency.
- Despite improvements, overall activity on Ethereum remains low.
- Average and total fees decreased post-Dencun upgrade due to a shift towards layer 2 chains.
- Concerns raised about ether potentially becoming inflationary amid low transaction activity following an increase in circulating supply.
- Ether’s price rose over 45% in the past month, influenced by institutional futures positioning.