Ethereum’s Upgrades: A Comedy of Errors or Just a Boring Tale?

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What to know:

  • JPMorgan claims Ethereum‘s upgrades are like a magician’s trick gone wrong—no network activity boost!
  • Since the Dencun upgrade in March 2024, average and total fees have plummeted. Who knew falling fees could be so thrilling? 🎢
  • Institutions are apparently the puppeteers behind the recent ether rally, according to the report. 🎭

Ah, the Ethereum blockchain, a grand stage where upgrades come and go, yet the audience remains unamused. According to the wise folks at JPMorgan (JPM), despite the fanfare of successive upgrades, the network activity remains as lively as a sloth on a Sunday afternoon.

“Neither the number of daily transactions nor the number of active addresses saw a material increase post recent upgrades,” the analysts, led by the illustrious Nikolaos Panigirtzoglou, lamented in their Wednesday report. It seems the upgrades were more of a gentle breeze than a roaring storm.

Yet, amidst this lackluster performance, the total value locked (TVL) on Ethereum saw a rise between the Dencun upgrade in March 2024 and the Pectra upgrade earlier this month. Perhaps this was due to a flurry of lending and borrowing on decentralized exchanges (DEXs), but alas, the increase appears to be more of a whisper than a shout in dollar terms compared to the blockchain’s ether token.

On May 7, Ethereum activated the Pectra upgrade, aiming to streamline staking, enhance wallet functionality, and improve overall efficiency. A noble quest, indeed! But does it make the ETH token and Ethereum itself more appealing to institutions? The bank thinks so, yet the upgrades have failed to ignite a meaningful increase in activity. Talk about a damp squib! 🎇

Following the Dencun upgrade, both average and total fees took a nosedive, partly due to a shift toward layer 2 chains. Who knew that fees could be so fickle?

Moreover, Ether’s circulating supply increased after Dencun, raising eyebrows about the crypto “becoming an inflationary asset amid subdued transaction activity,” as JPMorgan pointed out. Inflation in crypto? Now that’s a plot twist!

Futures positioning suggests that institutions played a significant role in the recent ether rally, the report added. Ether has risen more than 45% in the past month, according to CoinDesk data. Who knew that a little institutional magic could work wonders? 🪄

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2025-05-30 17:58