JPMorgan International Corporation (JPM) experts have expressed disappointment with the results and network activity of the April update of the Ethereum network known as the Shanghai upgrade. According to their findings, the Shanghai upgrade did not have the anticipated impact on the activity levels of the Ethereum blockchain.
The analysts noted that the previous shift from proof-of-work to proof-of-stake, which occurred with the Merge update, led to a significant reduction in energy consumption on the Ethereum network. However, instead of the expected growth with the launch of the Shanghai upgrade, the number of daily transactions on the network actually decreased by 12%, and the number of daily active addresses fell by 20%. Additionally, the supply of Ether (ETH) has been shrinking, leading to a sharp increase in ETH prices, but network activity growth has been disappointing.
JPMorgan Experts Express Concerns Over Ethereum’s Post-Shanghai Upgrade Performance
The JPMorgan experts suggest that despite expectations of significant ETH price growth and a deflationary model, various macroeconomic issues such as banking crises, regulatory pressure, and rising inflation have dampened hopes for Ethereum’s network activity and performance.
It’s important to note that opinions on the performance and future outlook of the Ethereum network can vary among experts and analysts, and the cryptocurrency market is influenced by a wide range of factors, including market sentiment, adoption, and technological developments.