{"id":160984,"date":"2023-09-22T19:43:31","date_gmt":"2023-09-22T14:13:31","guid":{"rendered":"https:\/\/dripp.zone\/news\/ethereum-network-activity-disappoints-after-shanghai-upgrade-crypto-news\/"},"modified":"2023-09-22T19:43:33","modified_gmt":"2023-09-22T14:13:33","slug":"ethereum-network-activity-disappoints-after-shanghai-upgrade-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/ethereum-network-activity-disappoints-after-shanghai-upgrade-crypto-news\/","title":{"rendered":"Ethereum Network Activity Disappoints After Shanghai Upgrade &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<div>\n<p>Insights shared by JPMorgan suggest that the Ethereum blockchain network has seen a major downturn in network activity and other on-chain metrics following the Shanghai upgrade in April.<\/p>\n<p>The analysts at JPMorgan pointed out a decline in <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coingape.com\/ethereum-whales-and-buterin-move-31-million-eth\/\">Ethereum\u2019s daily transactions<\/a>, daily active addresses, and the total value locked (TVL) in decentralized finance (DeFi) protocols on the network. In a note on Thursday, JPMorgan analysts led by Nikolaos Panigirtzoglou wrote:<\/p>\n<p><!-- WP QUADS Content Ad Plugin v. 2.0.72.1 --><\/p>\n<blockquote>\n<p>\u201cWhile the shift from proof-of-work to proof-of-stake that resulted from\u00a0the Merge upgrade\u00a0meant that the energy consumption for the Ethereum network collapsed by more than 99%, the Ethereum supply is shrinking and staking rose sharply (with the amount of ether staked up by 50% since\u00a0the Shanghai upgrade), the increase in network activity has been rather disappointing\u201d.<\/p>\n<\/blockquote>\n<figure id=\"attachment_159885\" aria-describedby=\"caption-attachment-159885\" style=\"width: 2274px\" class=\"wp-caption aligncenter\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-159885\" src=\"https:\/\/coingape.com\/wp-content\/uploads\/2023\/09\/ETH-On-chain-Metrice.webp\" alt=\"\" width=\"2274\" height=\"1314\" srcset=\"https:\/\/coingape.com\/wp-content\/uploads\/2023\/09\/ETH-On-chain-Metrice.webp 2274w, https:\/\/coingape.com\/wp-content\/uploads\/2023\/09\/ETH-On-chain-Metrice-300x173.webp 300w, https:\/\/coingape.com\/wp-content\/uploads\/2023\/09\/ETH-On-chain-Metrice-1224x707.webp 1224w, https:\/\/coingape.com\/wp-content\/uploads\/2023\/09\/ETH-On-chain-Metrice-768x444.webp 768w, https:\/\/coingape.com\/wp-content\/uploads\/2023\/09\/ETH-On-chain-Metrice-1536x888.webp 1536w, https:\/\/coingape.com\/wp-content\/uploads\/2023\/09\/ETH-On-chain-Metrice-2048x1183.webp 2048w, https:\/\/coingape.com\/wp-content\/uploads\/2023\/09\/ETH-On-chain-Metrice-150x87.webp 150w\" sizes=\"auto, (max-width: 2274px) 100vw, 2274px\"\/><\/noscript><figcaption id=\"caption-attachment-159885\" class=\"wp-caption-text\">courtesy: JPMorgan<\/figcaption><\/figure>\n<p>The decline in Ethereum activity indicates that several \u201cbearish forces\u201d that have persisted over the past year. This includes the FTX and Terra incidents, regulatory uncertainties and enforcement actions in the U.S., declining institutional interest in cryptocurrency, and reduced venture capital investment.<\/p>\n<p>JPMorgan analysts <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.theblock.co\/post\/252470\/jpmorgan-ethereum-shanghai-disappointing\">believe<\/a> that this may have had a more substantial impact than the positive effects of the Shanghai upgrade on Ethereum\u2019s network activity. Also, Ethereum has given a dismal price performance against Bitcoin over the last few months.<\/p>\n<p><!-- WP QUADS Content Ad Plugin v. 2.0.72.1 --><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Price performance was magnificent -18% against <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/BTC?src=hash&#038;ref_src=twsrc%5Etfw\">#BTC<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/68r88Xgo8I\">pic.twitter.com\/68r88Xgo8I<\/a><\/p>\n<p>\u2014 James V. Straten (@jimmyvs24) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/jimmyvs24\/status\/1705171235385086354?ref_src=twsrc%5Etfw\">September 22, 2023<\/a><\/p>\n<\/blockquote>\n<h3>Ethereum Enthusiasts Excited About Sharding<\/h3>\n<p>The cryptocurrency sector is currently pinning its hopes on the EIP-4844 upgrade, also known as protodanksharding, with the expectation of a significant boost in Ethereum network activity. Nevertheless, the JPMorgan analysts caution that \u201cpersistent negative crypto factors continue to pose challenges.\u201d<\/p>\n<p>Protodanksharding represents an initial phase leading towards the eventual adoption of danksharding. Rather than dividing the Ethereum blockchain into numerous shard chains, danksharding introduces data-containing blobs. These are temporary data packets appended to blocks, capable of accommodating more data than the blocks themselves.<\/p>\n<h3>Ethereum Community Challenges JPMorgan Observations<\/h3>\n<p><!-- WP QUADS Content Ad Plugin v. 2.0.72.1 --><\/p>\n<p>Some Ethereum community enthusiasts have raised questions over JPMorgan\u2019s observations. Ethereum enthusiats @MattKunke believes that JPMorgan is just looking at L1 transactions. However, the Ethereum Layer-2 solutions have shown tremendous improvements.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Almost guarantee they just looking at L1 transactions too instead of: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/RPyE2KggA4\">https:\/\/t.co\/RPyE2KggA4<\/a><\/p>\n<p>\u2014 mattkunke.eth \ud83e\udd87\ud83d\udd0a (@MattKunke) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/MattKunke\/status\/1705183427270529105?ref_src=twsrc%5Etfw\">September 22, 2023<\/a><\/p>\n<\/blockquote>\n<p>Another concern currently with Ethereum is the massive validator concentration on the network. At present, the network boasts nearly 800,000 active validators, marking a 41% surge since the introduction of the \u201cShapella\u201d upgrade in April, which facilitated staked ETH withdrawals.<\/p>\n<p>Christine Kim from Galaxy Research said that \u201cEthereum is getting close to reaching an unsustainable number of active validators. It\u2019s pretty technical, but network \u201clatency\u201d is becoming a key problem\u201d.<\/p>\n<h3>Do Ethereum Investors Have to Worry?<\/h3>\n<p>The ETH Price has already come under pressure and is trading under $1,600 levels at the press time. However, there\u2019s a likelihood of <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coingape.com\/grayscale-files-second-ethereum-futures-etf\/\">Ethereum futures ETFs<\/a> coming to the market by the next month of October. This could prove to be a major catalyst to drive the Ethereum price higher.<\/p>\n<p><!-- WP QUADS Content Ad Plugin v. 2.0.72.1 --><\/p>\n<div class=\"m-on mobiless\">\n<div id=\"social-section-new\">\n<p>\u2713 Share:<\/p>\n<p>                                  <a rel=\"nofollow noopener\" target=\"_blank\" class=\"social-text_new wp_new\" href=\"https:\/\/api.whatsapp.com\/send?text=https:\/\/coingape.com\/ethereum-on-chain-metrics-tank-after-shanghai-upgrade-should-investors-worry\/\" style=\"display: block\">  <i class=\"fa fa-whatsapp\"\/><\/a><\/p>\n<div>\n                                <a rel=\"nofollow noopener\" target=\"_blank\" class=\"social-text_new tw_new_logo\" href=\"https:\/\/twitter.com\/intent\/tweet?text=https:\/\/coingape.com\/ethereum-on-chain-metrics-tank-after-shanghai-upgrade-should-investors-worry\/\"><br \/>\n  <img loading=\"lazy\" decoding=\"async\" src=\"data:image\/svg+xml,%3Csvg%20xmlns=\" http:=\"\" class=\"mb-1\" alt=\"coingape\" width=\"30\" height=\"30\" data-lazy-src=\"https:\/\/cdn.coingape.com\/wp-content\/uploads\/2023\/08\/14164721\/x-logo.png\"\/><noscript><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/cdn.coingape.com\/wp-content\/uploads\/2023\/08\/14164721\/x-logo.png\" class=\"mb-1\" alt=\"coingape\" width=\"30\" height=\"30\"\/><\/noscript><br \/>\n<\/a>\n                                <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>          <!-- \n\n<div class=\"m-on pl-2 pr-2\">\n            \n\n<div class=\"row\">\n            \n\n<div class=\"col-6 pr-2\">\n         \n\n<div class=\"Borderboxies_2 mb-3  fullmobx\">\n             \n            <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coingape.com\/top-7-crypto-marketing-firms-of-the-year\/?utm_source=abovesidebartabnews&utm_medium=organicarticle\">\n            \n\n<div class=\"SponserdyWebimg_2\"><img loading=\"lazy\" width=\"834\" height=\"833\" src=\"data:image\/svg+xml,%3Csvg%20xmlns=\"http:\/\/www.w3.org\/2000\/svg\"%20viewBox='0%200%20834%20833'%3E%3C\/svg%3E\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"\" decoding=\"async\" data-lazy-src=\"https:\/\/cdn.coingape.com\/wp-content\/uploads\/2022\/12\/15175104\/top_crypto_marketing_agencies.jpg\" ><noscript><img loading=\"lazy\" width=\"834\" height=\"833\" src=\"https:\/\/cdn.coingape.com\/wp-content\/uploads\/2022\/12\/15175104\/top_crypto_marketing_agencies.jpg\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"\" decoding=\"async\" ><\/noscript><\/div>\n\n\n                \n\n<div class=\"Sponserdtent_2 mt-2\">Top Crypto Marketing Firms \/ Agencies 2023; Here\u2019s Best Picks [Updated]\n <\/div>\n\n\n            <\/a>\n          \n            <\/div>\n\n\n            <\/div>\n\n\n                  \n\n<div class=\"col-6 pl-2\">\n                 \n\n<div class=\"Borderboxies_2 mb-3  fullmobx\">\n             \n            <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coingape.com\/top-10-web-3-games-to-explore-in-2023-here-list\/?utm_source=priceanalysisbar&utm_medium=organicarticle\">\n            \n\n<div class=\"SponserdyWebimg_2\"><img loading=\"lazy\" width=\"834\" height=\"833\" src=\"data:image\/svg+xml,%3Csvg%20xmlns=\"http:\/\/www.w3.org\/2000\/svg\"%20viewBox='0%200%20834%20833'%3E%3C\/svg%3E\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"\" decoding=\"async\" data-lazy-src=\"https:\/\/cdn.coingape.com\/wp-content\/uploads\/2022\/12\/23134356\/jpg_20221223_134223_0000.jpg\" ><noscript><img loading=\"lazy\" width=\"834\" height=\"833\" src=\"https:\/\/cdn.coingape.com\/wp-content\/uploads\/2022\/12\/23134356\/jpg_20221223_134223_0000.jpg\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"\" decoding=\"async\" ><\/noscript><\/div>\n\n\n                \n\n<div class=\"Sponserdtent_2 mt-2\">Top 10 Web3 Games To Explore In 2023; Here List\n <\/div>\n\n\n            <\/a>\n          \n            <\/div>\n\n\n            <\/div>\n\n\n                <\/div>\n\n\n        <\/div>\n\n                    --><\/p>\n<div class=\"TabDicA\">\n<div class=\"TBAcon \">\n<div class=\"authorFlip tabcS\" id=\"TabA159865\">\n<div class=\"authorBox\">\n<div class=\"author_Name\">\n<!--\n                                      \n\n<div class=\"getAuthoname\">\n                                          \n                                                                                 \n                                       <\/div>\n\n \n--><\/p>\n<p>Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.                         <\/p>\n<\/p><\/div>\n<div class=\"author_Image\">\n                                             <img loading=\"lazy\" alt=\"\" src=\"data:image\/svg+xml,%3Csvg%20xmlns=\" http:=\"\" data-lazy-srcset=\"https:\/\/secure.gravatar.com\/avatar\/6d622b7613c3c79c72d94a2e7cffa3b2?s=400&#038;d=mm&#038;r=g 2x\" class=\"avatar avatar-200 photo\" height=\"200\" width=\"200\" decoding=\"async\" data-lazy-src=\"https:\/\/secure.gravatar.com\/avatar\/6d622b7613c3c79c72d94a2e7cffa3b2?s=200&#038;d=mm&#038;r=g\"\/><noscript><img loading=\"lazy\" alt=\"\" src=\"https:\/\/secure.gravatar.com\/avatar\/6d622b7613c3c79c72d94a2e7cffa3b2?s=200&#038;d=mm&#038;r=g\" srcset=\"https:\/\/secure.gravatar.com\/avatar\/6d622b7613c3c79c72d94a2e7cffa3b2?s=400&#038;d=mm&#038;r=g 2x\" class=\"avatar avatar-200 photo\" height=\"200\" width=\"200\" decoding=\"async\"\/><\/noscript>                                       <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"TabDesCm tabcS\" id=\"TabD159865\">\n<p>  The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n<p><!-- \n\n<div class=\"container p-1 mb-3  mt-4 \">\n    \n    \n     \n\n<div class=\"Maintitle clgrn border-0\">\n               <span>Crypto Stories<\/span>\n                    \n                    \n                    <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coingape.com\/web-stories\/\" class=\"viewAll p-0\">View all<\/a>\n                <\/div>\n\n\n     \n\n<div class=\"row mobileXS \">\n                     \n          \n\n<div class=\"item col-md-4\"> \n        \n\n<div class=\"Newseducation\">\n         \n\n<div class=\"Eduimg WduImg\">\n            <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coingape.com\/web-stories\/twitter-is-now-worth-just-33-of-elon-musks-purchase-price\/?utm_source=post&utm_medium=web-story\">\n            \n\n<div class=\"edIm StoryWebimg\"><img loading=\"lazy\" width=\"640\" height=\"853\" src=\"data:image\/svg+xml,%3Csvg%20xmlns=\"http:\/\/www.w3.org\/2000\/svg\"%20viewBox='0%200%20640%20853'%3E%3C\/svg%3E\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"twitter_is_now_worth_just_33__of_elon_musk___s_purchase_price_720\" decoding=\"async\" data-lazy-src=\"https:\/\/coingape.com\/wp-content\/uploads\/2023\/05\/twitter_is_now_worth_just_33__of_elon_musk___s_purchase_price_720.jpg\" \/><noscript><img loading=\"lazy\" width=\"640\" height=\"853\" src=\"https:\/\/coingape.com\/wp-content\/uploads\/2023\/05\/twitter_is_now_worth_just_33__of_elon_musk___s_purchase_price_720.jpg\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"twitter_is_now_worth_just_33__of_elon_musk___s_purchase_price_720\" decoding=\"async\" \/><\/noscript><\/div>\n\n\n                \n\n<div class=\"Educontent\">Twitter is now worth just 33% of Elon Musk\u2019s purchase price <\/div>\n\n\n            <\/a>\n            <\/div>\n\n\n        <\/div>\n\n\n        <\/div>\n\n\n          \n          \n  \n              \n          \n\n<div class=\"item col-md-4\"> \n        \n\n<div class=\"Newseducation\">\n         \n\n<div class=\"Eduimg WduImg\">\n            <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coingape.com\/web-stories\/will-cramer-curse-strike-again\/?utm_source=post&utm_medium=web-story\">\n            \n\n<div class=\"edIm StoryWebimg\"><img loading=\"lazy\" width=\"640\" height=\"853\" src=\"data:image\/svg+xml,%3Csvg%20xmlns=\"http:\/\/www.w3.org\/2000\/svg\"%20viewBox='0%200%20640%20853'%3E%3C\/svg%3E\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"will_cramer_curse_strike_again_720\" decoding=\"async\" data-lazy-src=\"https:\/\/coingape.com\/wp-content\/uploads\/2023\/05\/will_cramer_curse_strike_again_720.jpg\" \/><noscript><img loading=\"lazy\" width=\"640\" height=\"853\" src=\"https:\/\/coingape.com\/wp-content\/uploads\/2023\/05\/will_cramer_curse_strike_again_720.jpg\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"will_cramer_curse_strike_again_720\" decoding=\"async\" \/><\/noscript><\/div>\n\n\n                \n\n<div class=\"Educontent\">Will Cramer Curse Strike Again? 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The analysts at JPMorgan pointed out a decline in Ethereum\u2019s daily transactions, daily active addresses, and the total value locked (TVL) in decentralized finance (DeFi) protocols on [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":156372,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[188,183,185,186,187,184,189,150,182,190],"class_list":["post-160984","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-blockchain-tech","tag-blockchain-technology","tag-crypto-technology","tag-cryptocurrency-technology","tag-metaverse-technology","tag-nft-technology","tag-soul-bound-token","tag-tech","tag-technology","tag-token-technology"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/160984","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=160984"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/160984\/revisions"}],"predecessor-version":[{"id":160985,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/160984\/revisions\/160985"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/156372"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=160984"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=160984"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=160984"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}