Ethereum update hasn't panned out as expected, says JPMorgan analysts

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Ethereum update hasn't panned out as expected, says JPMorgan analysts

JPMorgan Chase has ruled that Ethereum's latest update hasn't quite panned out as expected.

A team of analysts at the bank, led by management director Nikolaos Panigirtzoglou, said in a note late last week that although Ethereum's Shanghai upgrade in April made significant changes to the network, the update has in other ways shown to be lackluster.

The Shanghai update allowed users to withdraw staked Ether from the blockchain after last year's much-bally-ballyhooed Merge, which reduced the blockchain's energy footprint by 99% by transitioning the network to proof of stake from the more energy-intensive proof of work.

Since the upgrade, daily transactions on Ethereum have dropped 12%, while the number of daily active addresses and the total value on the network have dropped 20% and 8%, according to JPMorgan.

The upcoming major upgrade to Ethereum is the EIP-4844 upgrade, also known as protodanksharding, that will be completed by the end of the year. It aims to enable Ethereum to process more data than it could previously.

The analysts said they hoped this update would help turn the tide for activity on Ethereum, but'remained bearish crypto forces remain a headwind.