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2025-05-31 17:20:54

PMorgan: Ethereum Upgrade Did Not Increase Network Activity

   The recent Pectra update has made significant improvements to the functionality of the Ethereum network, which has had a positive impact on both its value and the overall market capitalization of the initiative. However, JPMorgan analysts note that this change does not yet contribute to a significant increase in activity on the Ethereum blockchain.

   In particular, a research report prepared under the guidance of expert Nikolaos Panigirtzoglou concluded that key metrics such as daily transaction volumes and the number of active network participants remained almost at the same level before the update. However, it should be noted that the total amount of locked-in value (TVL), which represents funds in the infrastructure of centralized applications on the platform, has increased recently. This is probably due to the increased interest in the segment of decentralized finance (DeFi), including lending and borrowing formats.

As for the main functionality of the Pectra update, it has undergone highly positive changes and provided users of the Ethereum network with the following advantages:  

  •  improved performance and availability of staking operations;  
  •  acceleration of the processes of entering funds into the protocol and their subsequent withdrawal, which makes the system more flexible and faster;  
  •  increased payments for validators involved in transaction validation, which encourages more participants to contribute resources to maintaining network security.

   In the opinion of JPMorgan experts, although improvements such as Pectra make the Ethereum network more attractive to institutional players, there is still no need to observe a general increase in its real involvement and large-scale systematic usefulness. Analysts say that additional efforts will be required to significantly increase the basic degree of integration of Ethereum. Measures aimed at addressing issues of scalability and handling large network loads remain particularly important.

   Thus, despite the technological progress implemented as part of the network updates, its long-term potential may remain inactive if the implementation of further functions does not find sufficient drivers for structural changes and increased user engagement, whether individuals or corporate clients.

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