JPMorgan: The surge in activity triggered by the Ethereum Fusaka upgrade may be difficult to sustain

According to a report from CoinDesk, JPMorgan stated in a report sent to clients on Wednesday that the Fusaka upgrade of Ethereum, completed in 2025, has significantly increased network activity in the short term.

The upgrade effectively reduced transaction fees by increasing the data capacity of each block, leading to a rise in the number of transactions and active addresses. However, the bank expressed skepticism about the sustainability of this surge in activity. The report noted that historical experience shows that previous upgrades of Ethereum have failed to achieve sustained growth in network activity. Currently, Ethereum faces structural pressure from Layer 2 networks such as Base and Arbitrum, as well as competing public chains like Solana.

At the same time, the speculative frenzy related to NFTs and meme coins has subsided, coupled with the migration of major applications like Uniswap to dedicated chains, resulting in capital diversion. These factors have collectively led to a decrease in fee burning on the Ethereum mainnet, an increase in ETH supply, and a decline in the total value locked (TVL) measured in ETH. Although the Fusaka upgrade provided a short-term boost, these ongoing challenges cast a shadow over its long-term growth prospects.