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

PANews January 22 News, according to a report by CoinDesk, JPMorgan stated in a report sent to clients on Wednesday that the Ethereum Fusaka upgrade completed in December 2025 significantly boosted network activity in the short term. The upgrade increased the data capacity per block, effectively reduced transaction fees, and drove an increase in transaction counts and active addresses. However, the bank expressed skepticism about the sustainability of this activity rebound. The report believes that historical experience shows that Ethereum’s past upgrades have not resulted in sustained growth in network activity. Currently, Ethereum faces structural pressures 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 waned, and the migration of major applications like Uniswap to dedicated chains has led to capital outflows. These factors collectively have 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.