Ethereum Blockchain has not yet seen a significant increase in activity despite consecutive upgrades, Investment Bank JPMorgan (JPM) said in a research report.
“Neither the number of daily transactions nor the number of active addresses saw a significant increase after recent upgrades,” analysts wrote by Nikolao’s Panigirtzoglou in the Wednesday report.
Nevertheless, the total value locked (tvl) at Ethereum between the Dencun upgrade in March 2024 and Pectra earlier this month, the bank noticed, possibly due to increased lending and borrowing on decentralized exchanges (DEXS), but the increase looks lower in dollar than in blockchain’s ether
Token.
Ethereum activated Pectra upgrade on May 7th. The update aims to streamline efforts, improve the wallet functionality and improve overall efficiency.
Pectra makes ETH tokenet and Ethereum itself more appealing to institutions, the bank said. It separates the network from competitors, but the upgrades have not increased the activity in a meaningful way.
The bank noted that after the dencun upgrade, both average and total fees fell partially due to a shift against layer 2 chains.
Ether’s circulating supply also increased after Dencun, which raised concern that the crypto “became an inflationary asset in the middle of muted transaction activity,” JPMorgan said.
Futures positioning suggests that institutions played a major role in the recent rally in Ether, the report added. Ether has risen more than 45% in the last month, Coindesk data shows.
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