PANews reported on May 15th, citing The Block, that JPMorgan analysts stated that despite the overall recovery of the crypto market following the Iranian conflict, Ethereum and altcoins continue to underperform Bitcoin. Analysts believe this trend, which began in 2023, is unlikely to change unless there is substantial improvement in network activity, DeFi, and real-world applications. Analysts pointed out that the spot Bitcoin ETF has recovered about two-thirds of its previous outflows, while the spot Ethereum ETF has only recovered about one-third. CME futures positions show that institutions are rebuilding their Bitcoin exposure more aggressively than Ethereum; Bitcoin futures positions have almost fully recovered, while Ethereum futures positions remain below previous levels.

Analysts also questioned whether the upcoming Ethereum upgrade would effectively boost network activity. They stated that upgrades over the past three years have primarily reduced Layer 2 transaction costs, leading to lower Ethereum network fees, a weaker token burning mechanism, and faster net supply growth, thus weakening ETH's price support. Regarding altcoins, analysts pointed to poor liquidity, insufficient market depth, limited growth in DeFi activity, and repeated hacking incidents eroding confidence and hindering new capital allocation.