{"id":93463,"date":"2026-01-22T21:09:11","date_gmt":"2026-01-22T18:09:11","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=93463"},"modified":"2026-01-22T21:10:20","modified_gmt":"2026-01-22T18:10:20","slug":"jpmorgan-questions-ethereums-long-term-activity-sustainability","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/jpmorgan-questions-ethereums-long-term-activity-sustainability\/","title":{"rendered":"JPMorgan Questions Ethereum’s Long-term Activity Sustainability"},"content":{"rendered":"

The recent Fusaka<\/a> update has led to increased activity<\/a> on the Ethereum network. However, JPMorgan has expressed doubts about the blockchain’s long-term prospects, according to a report by The Block<\/a>.\u00a0<\/p>\n

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Source: The Block.\u00a0<\/figcaption><\/figure>\n
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\u201cHistorically, successive Ethereum updates have failed to significantly boost activity on a sustainable basis for various reasons,\u201d experts noted.\u00a0<\/p>\n<\/blockquote>\n

They believe the first factor is the ongoing migration of users from the Ethereum mainnet to Layer 2 solutions<\/a>. Citing CryptoRank data, analysts pointed out that Base alone currently generates about 60-70% of the total fee revenue in L2.<\/p>\n

Competition from alternative blockchains is another persistent issue. JPMorgan highlighted that networks like Solana have captured a \u201csignificant\u201d market share by offering faster and cheaper transactions, thus attracting users and developers away from the second-largest cryptocurrency by market capitalisation.\u00a0<\/p>\n

Analysts also noted a decline in speculative activity, which previously led to surges of interest in Ethereum. During the bull cycle of 2021-2022, demand related to initial coin offerings<\/a>, NFTs<\/a>, and meme coins contributed to increased transaction volumes. Many of these trends have since weakened or shifted to other protocols.\u00a0<\/p>\n

Moreover, capital that was once primarily invested in Ethereum is now more dispersed across specialised blockchains. Experts cited examples such as Uniswap’s transition to its own L2 blockchain<\/a> and the migration of dYdX to an independent network<\/a>.<\/p>\n

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\u201cBoth companies have successfully attracted liquidity to their platforms, enabling them to generate revenue from protocols,\u201d analysts added.<\/p>\n<\/blockquote>\n

The decline in Ethereum activity leads to a reduction in the volume of ETH burned from fees. This, in turn, contributes to an increase in the circulating supply of the coin, negatively impacting its prices, JPMorgan explained.<\/p>\n

Earlier, blockchain security specialist Andrey Sergeenkov linked<\/a> the record growth in Ethereum transactions to mass spam.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The recent Fusaka update has led to increased activity on the Ethereum network, but JPMorgan has expressed doubts about the blockchain’s long-term prospects.<\/p>\n","protected":false},"author":1,"featured_media":93464,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"JPMorgan questions Ethereum's long-term activity sustainability after Fusaka update.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[46,229,1138],"class_list":["post-93463","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-ethereum","tag-jpmorgan","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"229","promo_type":"1","layout_type":"1","short_excerpt":"JPMorgan questions Ethereum's long-term activity sustainability after Fusaka update.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/93463","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=93463"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/93463\/revisions"}],"predecessor-version":[{"id":93465,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/93463\/revisions\/93465"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/93464"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=93463"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=93463"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=93463"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}