Ethereum’s Post-Shanghai Upgrade Performance
A recent report by JPMorgan reveals that Ethereum has experienced a decline in daily activity and total value locked (TVL) following the Shanghai upgrade. Daily transactions have decreased by 12%, daily active addresses have dropped by almost 20%, and TVL has fallen by nearly 8%. This decrease in activity may be contributing to the significant drop in Ethereum gas consumption, which has plummeted by 99.99% since the transition to Proof-of-Stake. However, Ethereum staking has gained momentum since the Merge, leading to a reduction in the supply of Ethereum. Despite this, network activity has not increased as much as expected.
ETH Price and ETF Filings
Amid a market reversal, Ethereum’s price has dropped from $1,665 to $1,597. Bitcoin’s capitalization has also decreased to $519 billion, accounting for 49.2% of the cryptocurrency market. In terms of ETF filings, Grayscale has submitted an application for the Grayscale Ethereum Futures Trust ETF, following their recent lawsuit victory against the SEC. Valkyrie and other firms have also filed for Ethereum futures ETFs, generating optimism within the Ethereum market. The SEC is currently reviewing applications for both Ethereum and Bitcoin ETFs, with a 45-day public comment period to gather opinions on these financial products.
Hot Take: The Challenges of Post-Upgrade Adoption
The post-Shanghai upgrade performance of Ethereum raises concerns about its ability to attract more users and achieve greater efficiency. Despite reducing energy consumption and increasing staking, the network’s daily activity has decreased significantly. This decline in activity may be influencing the decrease in gas consumption and fees. As Ethereum faces these challenges, it remains to be seen how it will adapt and address the issues hindering its growth.
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