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

The bank's analysts, 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 enabled users to withdraw the staked Ether that was put up 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 fallen 12%, while the total value of daily active addresses and the total value locked on the network have fallen 20 percent and 8%, respectively, according to JPMorgan.

The next significant update to Ethereum is the planned EIP-4844 upgrade, also known as 'protodanksharding', which is due to be completed by the end of the year. It aims to allow for the processing of more data, resulting in the release of more than it could previously.

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