JPMorgan: Ethereum's Upgrades Fell Short
Ethereum's recent Pectra upgrade aided ether's price and market cap but didn't enhance onchain activity, JPMorgan analysts state. Although these upgrades make Ethereum appealing to institutions and introduce security token standards, network activity hasn't grown meaningfully. Institutional interest is reflected in CME futures but not in retail ETF inflows. Despite a rise in value locked in ETH, actual transactions and addresses remain static. Layer 2 adoption and increased supply post-Dencun upgrade suggest inflation risks without higher transaction activity. Overall, Ethereum faces strong competition, and its market dynamics remain challenging.
FAQ
❓ What is the Pectra upgrade?
The Pectra upgrade includes Ethereum improvement proposals to enhance staking and enable faster transactions.
❓ Why hasn't Ethereum's activity increased?
Despite upgrades, onchain activity remained low due to weak retail participation and static transaction numbers.
❓ What are security token standards?
Security token standards like ERC-3643 help tokens comply with financial regulations, enhancing institutional appeal.