Analysts believe this trend will not change in the foreseeable future. Even Ethereum’s planned network upgrades are unlikely to reverse the dynamic.
JPMorgan analysts forecast further strengthening of bitcoin’s dominance over Ethereum and other altcoins. Even Ethereum’s planned network upgrades are unlikely to change this trend anytime soon.
Hot topic: Bitcoin Rally Hits Resistance as US Demand Stays Weak
At the time of publication on May 15, Bitcoin (BTC) trades at approximately $80,350. The coin has risen modestly by 1% over 24 hours.
BTC Recovers Faster
Since the escalation of the Middle East conflict in late February, bitcoin has shown a stronger recovery than the rest of the market. Here are some key reasons:
- Institutional investors are returning more actively to the leading cryptocurrency.
- Inflows into US spot bitcoin ETFs have offset two-thirds of recent outflows, while Ethereum ETFs have offset only one-third.
- Open interest in BTC futures has returned to high levels, while interest in ether remains low.
Altcoin Weakness Since 2023
JPMorgan analysts attribute the underperformance of Ethereum (ETH) and other altcoins to three main factors:
- Low liquidity and insufficient market depth
- Stagnation in the DeFi sector
- Regular hacks and security issues
Read more: Gold-Backed Cryptocurrency 2026 — Real Gold Tokens, Top Coins & Safe Ways to Invest
“All these factors have undermined investor confidence and are holding back new capital inflows into the alternative cryptocurrency ecosystem,” the bank’s specialists noted.
Ethereum Upgrades Won’t Help
JPMorgan experts doubt that the planned Glamsterdam and Hegota hard forks this year will significantly change the situation.
“The trend established in 2023 is unlikely to reverse unless we see significant improvements in network activity, DeFi, and real-world applications,” analysts stated.
Previous network upgrades over three years have mostly reduced transaction costs on L2 solutions. This lowered the volume of burned fees and increased coin supply, creating additional pressure on ether’s price.
Without a sharp rise in DeFi activity and the emergence of real-world applications, JPMorgan believes the altcoin underperformance trend will persist.
Learn more: Ethereum Updates 2026 — Upcoming Changes That Could Transform the Network
