Ethereum’s recent Pectra upgrade has enhanced its institutional appeal, but has yet to drive a significant rise in onchain activity, according to a report by JPMorgan.
In a note shared with The Block, JPMorgan analysts led by Nikolaos Panigirtzoglou acknowledged that while the latest upgrade supports Ethereum’s long-term growth narrative, it hasn’t translated into measurable increases in network usage.
Institutional Focus Over Retail Activity
The Pectra upgrade, rolled out earlier this month, implemented a suite of ETH Improvement Proposals (EIPs). These focused on streamlining staking processes, improving reward structures, and enabling quicker asset movement on the network. Analysts view these technical enhancements as favorable to institutions considering Ethereum exposure.
“The upgrade adds important functionality for staking and makes the network more efficient, which will appeal to larger investors,” the analysts noted. However, they added, “successive upgrades have failed to materially boost network activity.”
Strategic Shift Mirrors Bitcoin’s Institutional Path
JPMorgan emphasized that Ethereum’s development is increasingly geared toward institutional integration, following a pattern seen in Bitcoin’s adoption trajectory. The analysts contrasted Ethereum’s strategy with rival blockchain platforms, which they said largely depend on retail-driven trends, such as meme coin trading.
“Ethereum is actively differentiating itself by targeting deeper institutional engagement,” the report stated. “This is a strategic pivot away from the high-risk, retail-oriented activity dominating competitor chains.”
Conclusion
Despite the limited short-term impact on transaction volumes, JPMorgan believes Ethereum’s continued focus on infrastructure and institutional readiness may position it for stronger long-term growth. The Pectra upgrade reinforces Ethereum’s ambition to be the premier smart contract platform for enterprise-level blockchain adoption.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/ethereums-pectra-upgrade-boosts-appeal-but-network-activity-remains-flat-jpmorgan/