[DigitalToday reporter Chi-gyu Hwang (황치규)] Ethereum network activity increased after the Fusaka upgrade carried out late last year, but JPMorgan raised questions over whether the upswing will last, The Block reported on Jan. 22.

Citing a JPMorgan report, The Block said existing problems still remain and long-term growth is likely to be limited.

The Fusaka upgrade expanded network data capacity and immediately lowered fees. But JPMorgan pointed out that, "historically, Ethereum upgrades have not led to a sustained increase in network activity." The report also cited as key variables the shift of activity to layer-2 networks (Base, Arbitrum, Optimism) and growth in rival blockchains such as Solana.

During the 2021 to 2022 bull market, ICOs, NFTs and a memecoin boom pushed up trading volumes. The report said that speculative activity like this has now declined. With Uniswap moving to its own layer-2, UniChain, and dYdX shifting to an independent chain, funds are also becoming more dispersed. The Block said this could lead to a decline in Ethereum fee revenue and an increase in circulating supply, adding to downward pressure on prices.

JPMorgan maintained a sceptical stance on Ethereum but offered a positive outlook for bitcoin. The report projected that "bitcoin will rise to $170,000 within the next 6 to 12 months on leverage adjustments and improved volatility relative to gold."