JPMorgan: Ether and Altcoins Won't Close the Gap on Bitcoin Without a Major Network Boom

JPMorgan analysts have concluded that ether and the broader altcoin market are unlikely to reclaim ground lost to bitcoin unless the underlying networks see a significant surge in on-chain activity and user adoption. The bank's position signals a structurally cautious view on the altcoin rotation trade that many crypto investors have been anticipating.

The thesis is straightforward: bitcoin's dominance has been reinforced by institutional inflows — particularly through spot ETF products — while Ethereum and competing Layer-1 networks have yet to demonstrate the kind of network growth that would justify a sustained capital rotation. Without a meaningful uptick in active addresses, transaction volumes, or developer activity, JPMorgan sees no fundamental catalyst to close the gap.

For macro-aware crypto investors, the note is a reminder that the next altcoin season may be further out…