Ethereum's Fusaka upgrade, completed in December 2025, has significantly increased network activity in the short term, according to PANews. The upgrade enhanced each block's data capacity, effectively reducing transaction fees and boosting transaction numbers and active addresses.
However, JPMorgan expressed skepticism about the sustainability of this activity rebound. The report noted that historically, Ethereum's upgrades have not led to sustained growth in network activity. Currently, Ethereum faces structural pressure from Layer 2 networks like Base and Arbitrum, as well as competing public chains such as Solana. Additionally, the decline in speculative interest related to NFTs and meme coins, along with the migration of major applications like Uniswap to dedicated chains, has resulted in capital outflow. These factors have contributed to reduced fee burning on the Ethereum mainnet, increased ETH supply, and a decrease in total value locked (TVL) measured in ETH.
Despite the short-term boost from the Fusaka upgrade, these ongoing challenges cast a shadow over Ethereum's long-term growth prospects.
