JPMorgan analysts have expressed concerns that Ethereum (ETH) and the broader altcoin market may continue to underperform Bitcoin (BTC) unless there is a significant improvement in network activity, DeFi adoption, and real-world use cases. Since the deleveraging event in October 2025, ETH has lagged behind BTC in both price performance and institutional fund flows. While spot BTC ETFs have recovered about two-thirds of previous outflows, spot ETH ETFs have only regained about one-third.
The report highlights upcoming Ethereum upgrades in 2026, such as Glamsterdam and Hegota, which aim to enhance scalability and reduce costs. However, past upgrades have not significantly boosted on-chain activity and have instead weakened the ETH burn mechanism by reducing Layer 2 costs and network fees, increasing net supply pressure.
JPMorgan Warns ETH May Struggle Without Increased Network Activity
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