JPMorgan has raised fresh concerns over Ethereum’s (CRYPTO:ETH) long-term economic outlook despite a short-term surge in activity following the Fusaka network upgrade.
The investment bank said recent technical improvements have yet to prove they can deliver sustainable growth across the Ethereum ecosystem.
The Fusaka upgrade, rolled out on December 3, increased Ethereum’s maximum data capacity per block from 15 to 21 blobs.
Network data showed an immediate drop in transaction fees following the upgrade, easing costs for users and developers.
Lower fees triggered a sharp rise in transaction volumes and active addresses, briefly boosting on-chain activity.
Analysts said the initial response created the impression of a revival across the Ethereum network.
JPMorgan cautioned that similar post-upgrade surges in the past failed to translate into durable growth.
It remains uncertain that this recent increase in network activity will be sustainable over time.
Nikolaos Panigirtzoglou said.
The report argued that favourable blockchain metrics alone do not signal a fundamental structural shift.