JPMorgan Reports on Lack of Impact from Ethereum Upgrades on Network Activity

The investment bank JPMorgan has highlighted that the Ethereum blockchain has not experienced a notable increase in activity, despite several updates implemented over time. According to their latest findings, analysts under Nikolaos Panigirtzoglou illustrate that “Neither the number of daily transactions nor the number of active addresses saw a material increase post recent upgrades.”

Key Highlights:

Recent Ethereum updates have failed to elevate network activity.
Average and total transaction fees decreased after the Dencun upgrade in March 2024.
The institution’s futures positioning seems to have greatly influenced the ether rally, the report detailed.

Despite a rise in total value locked (TVL) on Ethereum post both the Dencun and the Pectra updates from March 2024 and May 2025, respectively, the bank notes that the increase is less significant when assessed in dollar terms relative to the ether (ETH) token’s performance.

Additional Details:

The Pectra update, activated on May 7, aims to enhance the usability of staking and overall efficiency of the Ethereum ecosystem, making it more attractive to institutions, yet it has not resulted in significant boosts in activity. The market has also observed a shift towards layer 2 solutions, which has contributed to the decreasing fees for transactions on the network.

Conclusion

JPMorgan expresses concern regarding potential inflation effects due to an increase in ether’s circulating supply following the Dencun update, marking a significant consideration in the context of subdued transaction activity.