Ethereum sees trading volume surge on 'Fusaka upgrade'… JPMorgan says "questions remain over its durability"

JOON HYOUNG LEE

Summary

JPMorgan said Ethereum’s (ETH) Fusaka upgrade led to lower fees and increases in transaction counts and active addresses.
However, citing historical precedent, JPMorgan said successive Ethereum upgrades have failed to deliver a sustained, meaningful improvement in network activity.
Ethereum was trading at $2,937.86 on CoinMarketCap, down 1.31% from the previous day and down 11.89% from a week earlier.

Global investment bank (IB) JPMorgan has released an analysis suggesting the effects of Ethereum’s (ETH) Fusaka upgrade may be difficult to sustain.

According to CoinDesk on the 22nd (local time), JPMorgan said in an investor letter the previous day (21st) that “the Fusaka upgrade carried out last month immediately reduced Ethereum fees, while both transaction counts and the number of active addresses increased.” JPMorgan added that “historically, successive Ethereum upgrades have failed to deliver a sustained, meaningful improvement in network activity.”

The Fusaka upgrade was applied to the Ethereum mainnet in early last month. The key focus was “scalability,” and the upgrade significantly improved metrics such as Ethereum’s network throughput. JPMorgan noted that “a series of upgrades over the past year lifted (Ethereum) network activity, but past cases show such rebounds tend to fade over time.”

Meanwhile, as of 11:53 p.m. that day, Ethereum was trading at $2,937.86 on CoinMarketCap, down 1.31% from the previous day. That is a decline of 11.89% compared with a week earlier.

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