TechFlow News, according to CoinDesk, JPMorgan (JPM) said in a research report on Thursday that the Ethereum Shanghai upgrade implemented in April does not appear to have increased activity on the world's largest smart contract blockchain as many had hoped.
The bank noted that since the Shanghai upgrade, Ethereum’s daily transaction volume has dropped by 12%, daily active addresses have declined by nearly 20%, and the total value locked (TVL) in DeFi on the blockchain has fallen by almost 8%.
While staking has increased by 50% since the Shanghai upgrade—helping improve network security—the “share of liquid staking protocols such as Lido remains disturbingly high, raising concerns about centralization.”
The report added that Ethereum network activity is expected to rise significantly with the upcoming EIP-4844 upgrade, or Protodanksharding, but “persistent bearish crypto forces remain a headwind.”
