JPMorgan’s Shocking Verdict: Why Altcoins Are Stuck Behind Bitcoin-Are They Doomed?

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JPMorgan says ether and altcoins won’t catch up to <a href="https://bbg-news.com/btc-usd/">bitcoin</a> without a major network boomMarkets

What to know:

  • JPMorgan said ether has underperformed bitcoin in both price action and institutional flows since the October 2025 deleveraging event.
  • Upcoming Ethereum upgrades may improve scalability, but past upgrades failed to materially boost onchain activity.
  • Altcoins other than ether continue to suffer from weak liquidity, shallow market depth and fading confidence after years of hacks and stalled DeFi growth, the bank said.

According to a recent JPMorgan report, Ethereum and most other cryptocurrencies besides Bitcoin are unlikely to start performing better unless they see significant increases in network usage, more people using decentralized finance (DeFi) applications, and more practical, real-world applications.

As a crypto investor, the last six months have been pretty rough. Rising interest rates, ongoing inflation worries, and a general reluctance to take risks have really hit the market. I saw significant drops in the value of both Bitcoin and Ether earlier this year, and we’ve also seen a lot of money leaving crypto ETFs and a general trend of people reducing their debt in the crypto space.

Despite a general recovery in the crypto market following the conflict in Iran, both Ethereum and other alternative cryptocurrencies haven’t performed as well as Bitcoin, according to analysts led by Nikolaos Panigirtzoglou.

Analysts observed differing trends in ETF investments, highlighting that Bitcoin ETFs have regained about two-thirds of the money that previously flowed out, whereas Ether ETFs have only recovered around one-third.

Traders who follow market trends, like commodity trading advisors and crypto funds, still hold relatively few bitcoin and ether, according to the report. This indicates that speculative investors haven’t yet made significant new investments in these cryptocurrencies.

Since the start of the conflict in Iran, cryptocurrency prices have become a bit more stable. Investors are attracted to the crypto market because it’s always open for trading and there’s increasing interest from larger institutions. During the conflict, Bitcoin and Ether have sometimes performed better than stocks and other investments considered risky, although prices are still fluctuating quite a bit.

As an analyst, I’ve been following the planned Ethereum upgrades – things like Glamsterdam and Hegota scheduled for 2026 – and they’re aimed at making the network faster and cheaper to use. However, we’re cautiously optimistic. Past upgrades haven’t always led to a significant increase in actual usage on the blockchain, so we’re watching closely to see if these new changes will have a different impact.

Previous improvements actually lowered transaction fees on Ethereum’s network, which reduced the amount of the token being burned. This led to a larger overall supply and put downward pressure on its price.

Since 2023, other cryptocurrencies besides Bitcoin haven’t performed as well, largely due to less available money in the market, reduced trading activity, slow growth in decentralized finance, and recurring security problems that have shaken investor trust, according to the report.

Ongoing hacks and security problems are still hurting crypto markets. These incidents erode trust among investors, reduce available funds for trading, and make institutions hesitant to get involved.

Recent hacks and security breaches in decentralized finance (DeFi) and on various trading platforms have caused investors to withdraw funds and are making people question how secure blockchain technology truly is, especially for smaller cryptocurrencies and decentralized apps.

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2026-05-19 17:28