Ethereum update hasn't panned out as expected, according to analysts

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Ethereum update hasn't panned out as expected, according to analysts

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

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

The Shanghai update gave users the ability to withdraw their staked Ethereum, which was put up after last year's much-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 by 12%, while the total value of daily active addresses and the total value locked on the network have decreased by 20% and 8%, according to JPMorgan.

The next major upgrade to Ethereum is the EIP-4844 upgrade, also known as 'protodanksharding', which is scheduled to be completed by the end of the year. The project aims to make Ethereum more efficient by processing more data than it could previously.

The analysts wrote that they hope this update would help turn the tide for activity on Ethereum, but continued bearish crypto forces remain a headwind.