JPMorgan Warns Ethereum's "Fusaka" Boost Won't Last

Watch on YouTube ↗  |  January 22, 2026 at 20:15  |  1:05  |  CoinDesk
Speakers
Jennifer Sanasie — Senior Anchor & Executive Producer, CoinDesk

Summary

CoinDesk's Jennifer Sanasie presents JPMorgan's skeptical view of Ethereum's December Fusaka upgrade. JPMorgan says the upgrade cut fees and boosted transaction volume, but the activity recovery is likely temporary. The bank cites fragmented layer 2s, app spinoffs, and fading NFT and memecoin activity as structural headwinds to Ethereum's long-term dominance. Ether had slightly rebounded to just below $3,000 at the time of the report.

  • JPMorgan doubts Ethereum's post-Fusaka activity surge will persist.
  • Fusaka upgrade reduced fees and spiked transaction volume in December.
  • JPMorgan says historical upgrades failed to produce sustained growth.
  • Layer 2s like Base are cited as cannibalizing Ethereum revenue.
  • Apps such as Uniswap spinning off into their own chains are seen as headwinds.
  • Fading NFT and memecoin activity adds to structural pressure.
  • Ether traded slightly below $3,000 as of the morning.
Ideas
Jennifer Sanasie Senior Anchor & Executive Producer, CoinDesk 0:11
JPMorgan warns Ethereum boost won't last
JPMorgan analysts argue Ethereum's Fusaka upgrade-driven fee cuts and transaction volume spike are likely temporary, because historical upgrades have consistently failed to deliver sustained growth. They see structural headwinds in a fragmented landscape where layer 2s like Base cannibalize revenue, major apps like Uniswap spin off into their own chains, and the NFT and memecoin boom fades. The bank views these factors as a roadblock to Ethereum's long-term dominance, making ETH unattractive despite the recent rebound to just below $3,000.
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This CoinDesk video, published January 22, 2026, features Jennifer Sanasie discussing ETH. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: Jennifer Sanasie  · Tickers: ETH