JPMorgan doubts Ethereum’s post-Fusaka upgrade activity surge will be sustained

JPMorgan analysts, led by Nikolaos Panigirtzoglou, are skeptical that the recent surge in Ethereum network activity following the Fusaka upgrade—which lowered transaction fees by expanding data capacity—will last. They argue that fundamental issues preventing sustained activity remain in place. These issues include the continued migration of activity to Layer 2 networks like Base, which now generates 60%-70% of all L2 revenue, and competition from faster, cheaper blockchains like Solana. Furthermore, the decline in speculative activity (like ICOs and NFTs) that previously drove usage, and the dispersion of capital to application-specific chains, are cited as ongoing challenges. These factors negatively impact Ethereum's fee generation and token economics, potentially increasing circulating supply and pressuring prices. JPMorgan remains less bullish on ETH compared to BTC, for which they maintain a $170,000 price target.

(Source：The Block)