JPMorgan, the largest US bank, described Ethereum (ETH)’s performance since the Shanghai upgrade as “disappointing.”
JPMorgan analysts led by Nikolaos Panigirtzoglou 21 September In a report published on Thursday, he suggested that he was disappointed with the performance of the Ethereum network after the Shanghai upgrade.
April After the Ethereum Shanghai upgrade in 2018, the energy consumption of the network decreased, with the coin burning activity of the supply narrowed down And staking Approximate transactions increased by 50% Analysts state that despite all these factors amount of transactions on the network And effectiveness has dropped significantly he emphasized.
Since Shanghai While the daily transaction amount on the Ethereum network decreased by 12% at Arbitrum A transaction reduction of 28% was seen. But despite the declines in these two networks Optimism number of daily transactions of the network increased by 18.59% It attracted attention.
Analysts estimate that Ethereum’s daily transactions, daily active addresses, and decentralized finance (DeFi) stated that their protocols experienced decreases in total assets locked (TVL).
Also since Shanghai Ethereum L-2 (Layer-2) Analysts stated that their networks gave mixed signals, Optimism (OP) While drawing attention to the continuing declines in particular Arbitrum (ARB) in blood loss He noted that he was alive. On the other hand, looking at the overall picture, TVL in both Arbitrum and Optimism fell to a lower level than they were 1 month before the Shanghai upgrade.
After Shanghai Ethereum TVL lost 7.79% to 31.21 from level 28.78 falling back to the band OP TVL decreased from 0.58 to 0.46 with a 20% depreciation fell. ARB’s TVL is 16.17% with regression from 1.44 to 1.20 fell.
The following statements in the report shared by analysts attracted attention:
While the shift from Proof-of-Work (PoW) to Proof-of-Stake (PoS) resulting from the Merge upgrade has meant that energy consumption for the Ethereum network has dropped by more than 99%, Ethereum supply has shrunk, and staking has increased sharply , the increase in network activity has been quite disappointing.