JPMorgan: The surge in activity triggered by the Ethereum Fusaka upgrade may be unsustainable.

PANews reported on January 22nd that, according to CoinDesk, JPMorgan Chase stated in a report to clients on Wednesday that Ethereum's Fusaka upgrade, scheduled for completion in December 2025, significantly boosted network activity in the short term. This upgrade effectively reduced transaction fees by increasing the data capacity of each block, leading to an increase in the number of transactions and active addresses.

However, the bank expressed doubt about the sustainability of this activity rebound. The report argues that historical experience shows Ethereum's previous upgrades have failed to lead to sustained growth in network activity. Currently, Ethereum faces structural pressure from Layer 2 networks such as Base and Arbitrum, as well as competing public chains like Solana. Simultaneously, the waning speculative frenzy surrounding NFTs and Meme tokens, coupled with capital diversion due to the migration of major applications like Uniswap to dedicated chains, has led to reduced fee burning on the Ethereum mainnet, increased ETH supply, and a decline in Total Value Locked (TVL) in ETH. While the Fusaka upgrade provided a short-term boost, these ongoing challenges cast a shadow over its long-term growth prospects.