Ethereum Disappointment Post-Shanghai: Did JPMorgan's Analysis Ring True?

The Ethereum Shanghai upgrade, implemented in April, was highly anticipated to boost scalability, security, and efficiency. However, recent analyses, particularly one from JPMorgan, suggest that Ethereum's activity since the upgrade has been, to put it mildly, 'disappointing.' Let's delve into the key findings and explore what's causing this perceived slowdown.

According to a report highlighted around September 22nd and 23rd of 2025, JPMorgan analysts observed a significant downturn in key Ethereum metrics post-Shanghai. Specifically, their findings indicate a 12% decline in Ethereum's daily transactions. This is a crucial indicator, suggesting reduced on-chain activity and potentially lower user engagement.

But the concerns don't stop there. The JPMorgan report also notes a nearly 20% drop in daily active addresses since the upgrade. This suggests fewer users are actively interacting with the Ethereum network, further reinforcing the narrative of diminished activity. This matches other reported information; Since the Shanghai upgrade, daily transactions on Ethereum have fallen by 12%, while the number of daily active addresses and the total value locked on the network have also seen declines.

Furthermore, data from late September 2025 indicated that daily transactions, daily active addresses and total value locked on the blockchain have all fallen since the upgrade. The analysts noted that while the upgrade did bring important changes to the Ethereum network, it fell short in terms of driving increased network activity. In fact, since the Shanghai upgrade in, network activity has broadly been subdued.

Some argue that the Shanghai upgrade has failed to deliver on its promises of improving scalability, security and efficiency of the Ethereum network and that instead, it has introduced new complexities. However, it's important to note that the upgrade primarily focused on unlocking staked ETH, and its impact on transaction speed and throughput may not have been immediately apparent.

So, what's next for Ethereum? All eyes are now on the EIP-4844 upgrade, also known as Proto-Danksharding. The analysts noted that while the upgrade did bring important changes to the Ethereum network, it fell short in terms of driving increased network activity. But whether that upgrade can reignite network activity and fulfill the initial promises of Ethereum remains to be seen. We'll continue to monitor the data and provide updates as the situation evolves.