stagnant on-chain activity, Ethereum is facing another concern: inflation. Since the Dencun update, the amount of ETH in circulation has increased, which could turn Ethereum into an inflationary asset if transactional activity does not pick up.

Although the updates have made Ethereum more attractive to institutional investors, particularly due to improvements in staking and the adoption of token standards, they have not succeeded in reviving activity on the network. Even the TVL (Total Value Locked) has shown modest growth in dollar terms, indicating that overall engagement remains low.

In conclusion, despite successful technical updates, Ethereum struggles to regain dynamic on-chain activity. The rising inflation of ETH and the stagnation of daily transactions raise questions about the blockchain's ability to maintain its position in the face of increasingly intense competition. As institutions continue to show growing interest in Ethereum, it remains to be seen whether this will be enough to reverse the trend.