Banking giant JP Morgan has published a report evaluating the effects of the Shanghai upgrade on the Ethereum network, which was implemented in April. According to the report, the Shanghai upgrade has led to an average increase of 50% in stake rates, but it has not generated the expected impact on network activities. The report also highlights significant declines in Ethereum network activity in recent months.
What Impact Did the Shanghai Upgrade Have on Ethereum?
In recent times, several important updates have occurred on the Ethereum network. These updates have resulted in significant changes to the Ethereum network. The Shanghai upgrade, which is one of the most critical upgrades for Ethereum, has also had a significant impact on the network.
The Shanghai upgrade has caused a significant increase in network security and stake rates. However, as stated in JP Morgan’s report, recent data shows significant declines in network activity.
JP Morgan, an investment bank and financial services company based in the state of New York, United States, has also published a report examining the effects of the Shanghai upgrade on the Ethereum network. The report emphasizes the decline in network activity. In addition to the decline in network activity, there have also been significant increases in stake rates.
Ethereum Report from JP Morgan
JP Morgan, which has published a report evaluating the effects of the Shanghai upgrade on the Ethereum network, draws attention to the rise in stake rates and the decline in network activity. Analysts led by Nikolaos Panigirtzoglou state in their report published on Thursday that recent upgrades have sharply reduced Ethereum’s energy consumption, narrowed ETH supply, and significantly increased stake rates, while also highlighting the decline in network activity.
According to the report, since the Shanghai upgrade, there has been an average decrease of 12% in daily transaction volume, approximately 20% decrease in daily active address count, and approximately 8% decrease in total TVL amount. JP Morgan analysts noted that recent negative developments such as the collapse of Terra and the bankruptcy of FTX potentially outweigh the positive effects of the Shanghai upgrade.
The analysts added to their report that since the Shanghai upgrade, stake rates have increased by an average of 50%, but protocols such as Lido have remained disproportionately high, raising concerns about centralization. The report also stated that the upcoming EIP-4844 upgrade could potentially lead to a significant increase in Ethereum’s network activity, but the ongoing downward trend could have a stronger impact on the network.
