Banking Behemoth JPMorgan Issues Bearish Ethereum Warning

Ethereum Struggles to Gain Investor Traction Despite Upgrades

According to a recent JPMorgan report, Ethereum continues to face weak investor interest even after its Pectra upgrade. While the upgrades triggered a price rally, they failed to significantly boost network usage or user adoption.

Institutional Interest Grows While Retail Participation Lags

JPMorgan's analysis shows that while institutional players are showing enthusiasm—evidenced by rising open interest in CME Group's regulated Ethereum futures—average users remain largely disengaged.

Key Challenges for Ethereum

• Weak ETF inflows: U.S. spot Ethereum ETF performance has been disappointing.
• Flat on-chain activity: Despite upgrades, network usage hasn't increased meaningfully.
• Stagnant DeFi growth: Total value locked (TVL) remains low in USD terms.
• Plunging fees: While beneficial for users, lower fees indicate weak transaction demand.

Inflation Concerns Resurface

The report highlights another worrying trend: Ethereum's supply is increasing due to reduced burn rates post-upgrade. This shift toward inflation undermines the "ultrasound money" narrative that previously supported ETH's value proposition.

Overall, JPMorgan's findings suggest Ethereum faces significant hurdles in attracting broader investor and user adoption, despite its technical improvements.