Activity in the Ethereum Network fails to take off after its latest updates, says JPMorgan

Despite technical improvements and increase in blocked value, analysts of JPMorgan They assure that the activity in Ethereum It remains stagnant.

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• JPMorgan warns that there is no relevant increase in transactions or active addresses.
  
• Update Pectra improves the staking and monitoring functionality in Ethereum.
  
• Increases concern for inflation in Eth Before low activity.

The network Blockchain of Ethereum He continues to face challenges to increase their daily use, despite having implemented significant improvements in their technical abilities. A recent report of the investment bank JPMorgan, reviewed by COINDESK, question the real impact of recent updates, such as Dencun and sinabout the general adoption and the volume of transactions in the network.

Updates have not had the expected effect

The analysis, headed by the Nikolaos Panigirtzoglou strategist, points out that Neither the amount of daily transactions nor the number of active addresses has shown substantial growth since the introduction of these improvements. Although Ethereum It maintains its position as a leading platform for intelligent contracts, the lack of increase in activity generates questions about the effectiveness of updates in attracting real users.

Ethereum implemented the update Dencun In March 2024, followed by Pectra last May 7. These updates are part of their road map to a more efficient ecosystem, focused on reducing costs, optimizing user experience and integrating staking improvements and purse functions.

Specifically, Pectra It seeks to simplify staking participation and facilitate the use of Wallets, in addition to improving network efficiency. JPMorgan emphasize that these optimizations make Ethereum and his token Eth They are more attractive to financial institutions, compared to competing networks.

However, the report points out that, Despite these advances, a significant rebound has not been observed in interaction with the network.

Blocked value rises, but not in terms of dollars

JPMorgan Recognize that the total value blocked (TVL) in Ethereum increased between Dencun and Pectra This growth could be explained by greater use of loan and decentralized loans platforms (Dex), Although, the bank clarifies, the increase seems lower when analyzing in terms of dollars.

This observation suggests that the growth of TVL could be more related to the rise in the price of Eth —What has risen more than 45 % in the last month, according to market data – than with an organic adoption of the ecosystem.

After the implementation of Dencun, The average and total commissions in Ethereum They were reduced, in part thanks to the migration of activity towards layer 2 solutions (Layer 2), such as Arbitrum and Optimism This cost reduction, although it benefits users, could also be a sign of a lower demand for space in the main network.

Another critical point is the increase in the circulating offer of Eth after Dencun. This worries analysts, who fear that cryptocurrency will begin to behave as an inflationary asset, especially in a context of low network activity.

Institutional interest in Eth

The report highlights that the recent price increase in Eth It seems to be driven by a strong institutional presence in futures markets. This data suggests that, although the daily use of the network has not grown, there is a renewed speculative or investment interest by financial actors.

For Ethereum, This represents a double -edged sword: on the one hand, it attracts institutional capital; on the other, it does not necessarily translate into greater adoption or utility by the general public.

Technical updates such as Pectra and Dencun They mark important progress to Ethereum in terms of infrastructure and institutional experience. However, stagnation in network activity leaves doubts about its ability to attract everyday users and maintain a vibrant and decentralized economy.

The evolution of the ecosystem will depend not only on technological improvements, but on its ability to generate practical and sustained value.

Written article with the help of an AI content editor, edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain.

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