{"id":146427,"date":"2025-05-31T09:15:08","date_gmt":"2025-05-31T09:15:08","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/146427\/"},"modified":"2025-05-31T09:15:08","modified_gmt":"2025-05-31T09:15:08","slug":"jpmorgan-warns-ethereum-faces-flat-growth-weak-demand-post-upgrade","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/146427\/","title":{"rendered":"JPMorgan warns: Ethereum faces flat growth, weak demand post-upgrade"},"content":{"rendered":"<ul>\n<li>Ethereum upgrades attract institutions but fail to boost on-chain user activity.<\/li>\n<li>ETH sees record inflows despite muted retail interest and rising inflation concerns.<\/li>\n<\/ul>\n<p>Despite <a href=\"https:\/\/ambcrypto.com\/category\/ethereum-news\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">Ethereum [ETH]<\/a>\u2018s recent Pectra upgrade offering institutional-friendly features like improved staking efficiency and quicker fund movement, it hasn\u2019t sparked a notable rise in on-chain activity.<\/p>\n<p>JPMorgan issues warning<\/p>\n<p>Although the upgrade strengthens Ethereum\u2019s infrastructure and differentiates it from competitors, JPMorgan analysts believe past upgrades haven\u2019t significantly boosted network activity.<\/p>\n<p> The latest developments highlight a growing gap between Ethereum\u2019s technical progress and actual user engagement on the blockchain.<\/p>\n<p>Ethereum\u2019s pivot toward institutional adoption is further underscored by its integration of token standards like ERC-3643 and ERC-1400, frameworks specifically tailored for tokenized securities. <\/p>\n<p>These standards embed crucial compliance features such as KYC and AML protocols, aligning the Ethereum network more closely with the regulatory demands of traditional finance. <\/p>\n<p>This strategic alignment not only enhances Ethereum\u2019s appeal to regulated institutions but also signals growing acceptance among key financial infrastructure players.\u00a0<\/p>\n<p>This includes backing from entities like the Depository Trust and Clearing Corporation (DTCC).<\/p>\n<p>The analyst said,<\/p>\n<blockquote>\n<p>\u201cThis strategic shift towards encouraging further institutional engagement mirrors the trend seen in Bitcoin, where corporate and institutional engagement has significantly enhanced its appeal.\u201d\u00a0<\/p>\n<\/blockquote>\n<p>They added,\u00a0<\/p>\n<blockquote>\n<p>\u201cIn this way, Ethereum is distinguishing itself from competitor platforms that primarily rely on individual user engagement, as evidenced by the significant meme coin activity on those competitor platforms.\u201d<\/p>\n<\/blockquote>\n<p>What\u2019s behind this concern?<\/p>\n<p>JPMorgan analysts pointed out that Ethereum\u2019s institutional appeal is becoming evident in CME Futures activity, where there\u2019s been a notable rise in long positions\u2014a signal of growing interest from institutional players. <\/p>\n<p>However, this contrasts with the limited inflows into spot Ethereum ETFs, especially when measured against the surge seen in Bitcoin ETFs after Trump\u2019s election victory.<\/p>\n<p> This divergence highlights a gap in retail enthusiasm. <\/p>\n<p>Despite enhancements to the Ethereum network, on-chain metrics such as daily transaction counts and active addresses have remained relatively stagnant. <\/p>\n<p>While total value locked (TVL) in ETH has increased, reflecting more lending and borrowing activity, its growth in dollar terms has been comparatively subdued.<\/p>\n<p>Ethereum\u2019s market trend<\/p>\n<p>Despite lingering concerns over Ethereum\u2019s inflationary pressures and stiff competition from rival chains, recent developments suggest a possible turning point. <\/p>\n<p>With the Pectra upgrade and rising institutional demand, Ethereum is beginning to reclaim its position in the market.<\/p>\n<p> Ethereum recently <a href=\"https:\/\/ambcrypto.com\/ethereum-sees-205m-inflows-after-pectra-upgrade-sparks-investor-confidence\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">notched<\/a> its highest weekly inflow of 2025 at $205 million, signaling a notable shift in sentiment. <\/p>\n<p>While JPMorgan analysts remain cautious, pointing to falling fees, increased Layer 2 activity, and a rising circulating supply, Ethereum\u2019s ability to attract capital even amid a 2.93% price <a href=\"https:\/\/coinmarketcap.com\/currencies\/ethereum\/\" target=\"_blank\" rel=\"noopener nofollow external noreferrer\" data-wpel-link=\"external\">dip<\/a> underscores its resilience. <\/p>\n<p>Whether this momentum can sustain remains to be seen, but the tide may finally be turning in ETH\u2019s favor.\u00a0<\/p>\n<p>\t\t\t\t\t\t\t\t\t\t\tNext: <a href=\"https:\/\/ambcrypto.com\/b2b-stablecoin-payments-surge-30x-in-2-years-whats-fueling-this-explosive-growth\/\" rel=\"prev noopener\" data-wpel-link=\"internal\" target=\"_blank\">B2B stablecoin payments surge 30x in 2 years: What\u2019s fueling this explosive growth?<\/a>\t\t\t\t\t\t\t\t\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"Ethereum upgrades attract institutions but fail to boost on-chain user activity. ETH sees record inflows despite muted retail&hellip;\n","protected":false},"author":2,"featured_media":146428,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[52,51,16,15],"class_list":{"0":"post-146427","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-ambcrypto","9":"tag-business","10":"tag-uk","11":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114601690786794112","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/146427","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=146427"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/146427\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/146428"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=146427"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=146427"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=146427"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}