{"id":5933,"date":"2026-01-23T09:26:32","date_gmt":"2026-01-23T09:26:32","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=5933"},"modified":"2026-01-23T09:26:32","modified_gmt":"2026-01-23T09:26:32","slug":"jpmorgan-pours-cold-water-on-ethereums-post-upgrade-bounce","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=5933","title":{"rendered":"JPMorgan Pours Cold Water on Ethereum\u2019s Post-Upgrade Bounce"},"content":{"rendered":"<p><\/p>\n<div>\n<div id=\"blockquote-block_d5829744fae550a72c391797c74bd116\" class=\"blockquote-container\" style=\"border-color: #5100fc\">\n<div class=\"blockquote-text\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">JPMorgan says Ethereum\u2019s post-Fusaka surge may be temporary, citing past upgrades that failed to deliver sustained growth.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ongoing migration to Layer 2 networks and rising competition from faster chains like Solana continue to limit main-chain demand.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The decline of speculative activity and capital moving to application-specific blockchains has weakened Ethereum\u2019s long-term usage and economics.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p>JPMorgan analysts say Ethereum\u2019s recent surge in activity following the Fusaka upgrade may prove temporary, warning that the same constraints that have limited sustained usage in recent years remain unresolved.\u00a0<\/p>\n<p>The Fusaka upgrade, which went live on 3 December, increased Ethereum\u2019s data capacity by raising the maximum number of blobs per block from 15 to 21, leading to an immediate reduction in transaction fees. That fall in fees coincided with a short-term rise in active addresses and transaction volumes across the network.<\/p>\n<p>Despite the initial improvement, JPMorgan questioned whether the rebound can endure over time, noting that previous Ethereum upgrades delivered similar bursts of activity that later faded.\u00a0<\/p>\n<p>Analysts led by Nikolaos Panigirtzoglou said historical patterns show upgrades have not resulted in lasting increases in network usage. They attributed this in part to the continued migration of activity away from Ethereum\u2019s main chain toward Layer 2 networks such as Base, Arbitrum, and Optimism.<\/p>\n<p><strong>Related: Yakovenko vs. Buterin: Solana\u2019s Constant Evolution Meets Ethereum\u2019s \u201cWalkaway\u201d Ideal<\/strong><\/p>\n<h2 class=\"wp-block-heading\" id=\"h-competitive-pressures-intensify\">Competitive Pressures Intensify<\/h2>\n<p>Using CryptoRank data, the analysts highlighted that Base alone now accounts for roughly 60%\u201370% of total revenue generated across all Ethereum Layer 2 networks combined. That shift has reduced demand on Ethereum\u2019s base layer and weakened fee generation on the main chain.\u00a0<\/p>\n<p>At the same time, alternative blockchains offering faster and cheaper transactions, including Solana, have captured substantial market share from Ethereum.<\/p>\n<p>JPMorgan also pointed to the fading of speculative activity that previously supported network growth during the 2021\u20132022 cycle, when NFTs, ICOs, and memecoins drove transaction volumes higher.\u00a0<\/p>\n<p>Much of that activity has since declined or migrated to other chains, removing a key source of demand. Analysts added that capital has increasingly flowed into application-specific blockchains, such as Uniswap\u2019s Unichain and dYdX\u2019s independent network, further diluting Ethereum\u2019s economic activity.<\/p>\n<p><strong>Related: Bitcoin Whipsaws Higher After Trump Signals Greenland Deal, Drops EU Tariff Threat<\/strong><\/p>\n<\/p><\/div>\n<p>Blockchain,Ethereum,JPMorgan#JPMorgan #Pours #Cold #Water #Ethereums #PostUpgrade #Bounce1769160392<\/p>\n","protected":false},"excerpt":{"rendered":"<p>JPMorgan says Ethereum\u2019s post-Fusaka surge may be temporary, citing past upgrades that failed to deliver sustained growth. Ongoing migration to Layer 2 networks and rising competition from faster chains like Solana continue to limit main-chain demand. The decline of speculative activity and capital moving to application-specific blockchains has weakened Ethereum\u2019s long-term usage and economics. JPMorgan<\/p>\n","protected":false},"author":1,"featured_media":5934,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[1665,1662,133,962,1664,1661,1663],"class_list":{"0":"post-5933","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bitcoin","8":"tag-bounce","9":"tag-cold","10":"tag-ethereums","11":"tag-jpmorgan","12":"tag-postupgrade","13":"tag-pours","14":"tag-water"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>JPMorgan Pours Cold Water on Ethereum\u2019s Post-Upgrade Bounce - Crypto News: Latest Cryptocurrency News and Analysis<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptonews.uk.com\/?p=5933\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"JPMorgan Pours Cold Water on Ethereum\u2019s Post-Upgrade Bounce\" \/>\n<meta property=\"og:description\" content=\"JPMorgan says Ethereum\u2019s post-Fusaka surge may be temporary, citing past upgrades that failed to deliver sustained growth. 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