[Analysis] "Ethereum, User Base Has Not Significantly Grown Despite Consecutive Upgrades"

Ethereum (ETH) has undergone several feature improvements recently, but there is analysis suggesting that actual usage has not increased significantly.

According to the cryptocurrency-focused media outlet CoinDesk on the 30th (local time), J.P. Morgan recently stated in a report that "even after the series of network upgrades on Ethereum, neither the daily transaction count nor the number of active wallet addresses has shown meaningful growth."

The report notes that both the average and total fees on Ethereum have decreased since the Dencun upgrade in March. This is analyzed as a result of users moving to Layer 2 chains. The report highlighted, "As Ethereum's circulating supply has increased since Dencun, concerns are mounting that Ether could become an inflationary asset given the sluggish transaction volume."

At the beginning of this month, the Pectra upgrade was also applied, but observers noted that this did not lead to substantial growth in network activity. This upgrade focused on improving overall efficiency, including enhancements in staking and wallet functionalities.

The report analyzed, "(Increasing the staking limit) may be a factor that enhances Ethereum's appeal to institutional investors," but added, "the fact that the upgrades have not resulted in actual network activity growth remains a limitation."