Ethereum and other cryptocurrencies could lag behind Bitcoin if network activity does not improve.
May 15, 2026
According to a recent report from ChainCatcher, JPMorgan analysts have highlighted a persistent trend in the cryptocurrency market where Ethereum and other altcoins have been lagging behind Bitcoin in terms of performance. Despite a general recovery in the market following the tensions in Iran, Ethereum and altcoins have failed to keep pace with Bitcoin since 2023.
The analysts have pointed out that for this trend to shift, there needs to be a significant improvement in factors such as network activity, decentralized finance (DeFi) utilization, and real-world applications. They have observed that while spot Bitcoin exchange-traded funds (ETFs) have managed to recover about two-thirds of their previous outflows, Ethereum ETFs have only been able to recover approximately one-third. Moreover, data from the Chicago Mercantile Exchange (CME) futures market indicates that institutional investors are more aggressively rebuilding their Bitcoin exposure compared to Ethereum. The open interest in Bitcoin futures has almost completely rebounded, whereas Ethereum futures open interest remains below previous levels.
The analysts have raised doubts about whether the forthcoming Ethereum upgrade will be able to effectively stimulate network activity. They have highlighted that recent upgrades in the past three years have primarily focused on reducing transaction costs at the Layer 2 level. While this has resulted in lower fees for Ethereum network transactions, it has also weakened the token burn mechanism and accelerated net supply growth, thereby diminishing the support for ETH’s price.
When it comes to altcoins, the analysts have pointed out several challenges that have hindered their performance. These include poor liquidity, inadequate market depth, limited growth in DeFi activity, and instances of repeated hacking incidents that have undermined investor confidence and deterred new capital inflows.
Overall, the JPMorgan analysts emphasize the importance of addressing these issues in order for Ethereum and altcoins to catch up with Bitcoin in terms of market performance. Improvements in network activity, DeFi utilization, and real-world applications will be crucial in determining the future trajectory of these digital assets in the cryptocurrency market.
