JPMorgan analysts stated that the Fusaka upgrade of Ethereum, launched in December 2025, has temporarily boosted trading volume and active addresses by increasing data capacity and reducing transaction fees. However, the related activity is difficult to sustain in the long term. The report pointed out that the mainnet continues to migrate to Layer 2 networks such as Base, Arbitrum, and Optimism, while alternative public chains like Solana are diverting users with lower costs and higher efficiency. Additionally, the speculative demand driven by ICOs, NFTs, and memecoins during the 2021–2022 bull market has significantly declined, and applications like Uniswap and dYdX have shifted to dedicated chains. These factors have weakened Ethereum's fee generation and burn mechanisms, leading to an increase in ETH supply and putting pressure on prices. (The Block)