A recent analysis by JPMorgan reveals several concerning metrics following Ethereum’s Shanghai upgrade. Daily transactions on the Ethereum network have dropped by 12%, contradicting expectations of increased activity with the transition to Proof-of-Stake (PoS). Additionally, daily active addresses have fallen by nearly 20% and the Total Value Locked (TVL) in DeFi has seen an 8% slump. Factors such as bearish forces in the cryptocurrency market, regulatory crackdowns, and a shrinking stablecoin universe have contributed to these challenges. Despite this, Ethereum is preparing for another upgrade called EIP-4844, which aims to address these shortcomings and improve network performance. However, ongoing bearish forces in the market could continue to pose challenges.
AI Sentiment: Neutral