JPMorgan: ETH's Fusaka upgrade boost will be short-lived

JPMorgan has analyzed that while Ethereum's recent Fusaka upgrade has increased transaction volume and the number of active addresses, this trend is unlikely to be sustainable in the long term. In a report, the bank noted that past network upgrades on Ethereum have had limited success in meaningfully boosting user activity on a sustained basis. This is partly because existing users are migrating their activities to Layer 2 networks, diminishing the mainnet's role. JPMorgan also cited competition from other chains like Solana (SOL) and the cooling of speculative fervor around NFTs and memecoins as factors hindering growth. Consequently, the bank suggested that network fee burns could decrease, potentially increasing the supply of ETH. Ethereum completed the final stage of its Fusaka upgrade on Jan. 8.