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JPMorgan analysts pointed out in their latest report that although the overall cryptocurrency market has recovered after the Iran conflict, Ethereum and other altcoins continue to underperform compared to Bitcoin. The analyst team led by Managing Director Nikolaos Panigirtzoglou stated that this trend, which began in 2023, "is unlikely to change unless we see meaningful improvements in network activity, DeFi, and real-world applications."The analysts noted that since the conflict triggered a market sell-off, Bitcoin's recovery in spot ETF fund flows and institutional futures positions has outperformed Ethereum. The spot Bitcoin ETF has recovered about two-thirds of the previous outflows, while the spot Ethereum ETF has only recovered about one-third. CME futures positions also indicate that institutional investors are rebuilding their Bitcoin exposure more aggressively than Ethereum.Regarding the upcoming Ethereum upgrades (Glamsterdam and Hegota), analysts questioned whether they would be sufficient to improve ETH's relative performance. Upgrades over the past three years have primarily reduced Layer 2 transaction costs, which has weakened the Ethereum network's fee generation and token burn mechanisms, leading to an accelerated net supply growth and weakened price support. Whether the new upgrades can generate enough new demand and network activity remains to be seen.For altcoins, analysts believe that since 2023, weak liquidity conditions, low market depth and breadth, limited growth in DeFi activity, and recurring hacking and security incidents have collectively eroded market confidence and hindered the deployment of new capital.

According to SoSoValue data, the overall cryptocurrency market is on an upward trend, with the DeFi sector performing exceptionally well, rising 5.15% in 24 hours. Among them, TAC (TAC) increased by 30.88%, influenced by factors such as the approval of the Bitwise Hyperliquid ETF, while Hyperliquid (HYPE) rose by 19.02%. Additionally, Bitcoin (BTC) increased by 2.20%, returning above $81,000; Ethereum (ETH) rose by 0.80%, approaching the $2,300 mark.It is worth noting that MAG7.ssi rose by 2.30%, DEFI.ssi increased by 7.55%, and MEME.ssi rose by 1.64%.In other sectors, the PayFi sector rose by 3.42% in 24 hours, with Telcoin (TEL) increasing by 13.85%; the Layer1 sector rose by 1.85%, with Canton Network (CC) increasing by 8.05%; the Layer2 sector rose by 1.27%, with ImmutableX (IMX) increasing by 8.93%; the CeFi sector rose by 1.14%, with FTX (FTT) increasing by 5.45%; the Meme sector rose by 0.11%, with TROLL (TROLL) increasing by 18.37%.Only the AI sector fell by 2.18%, but Billions Network (BILL) rose by 7.80%.The cryptocurrency sector indices reflecting historical market trends show that the ssiDeFi, ssiPayFi, and ssiSocialFi indices increased by 6.60%, 3.73%, and 2.50%, respectively.

According to BBX data, yesterday global listed companies and strategic funds showed significant trends in digital asset allocation and performance, with the core dynamics as follows:Strategic trusts continue to buy: The strategic reserve fund Jupiter Litterbox Trust increased its holdings by 386,428 JUP (worth about $85,000) yesterday. So far, this trust has accumulated over 7 million JUP purchases in May, with a historical total purchase amount reaching 123 million (total value of about $27.32 million).DeFi concept stocks see profit explosion: Hyperion DeFi, Inc. (NASDAQ: $HYPD) disclosed its Q1 2026 financial report, achieving a record net income of $8.84 million. Thanks to its unique "triple yield" HYPE deployment plan, the staking income generated by the company in this quarter reached three times the baseline level. It also updated its treasury reserves as of May 11: currently holding over 2 million HYPE tokens, 1.92 million KNTQ tokens, and 10 million HPL tokens, further establishing its position as a compliant DeFi investment portal in the U.S. stock market.

The co-founder of the Solana ecosystem DeFi project Ranger Finance, cobra (@barrett_io), posted on the X platform that Ranger Finance is gradually shutting down. The project took on business beyond its sustainable capacity, and the founder invested personal funds to maintain operations, but delays in financing led to the accumulation of bills. Ultimately, the financing was unsuccessful, and the raised funds were returned.The team is trying to fairly pay employees and suppliers with the remaining two months of operating funds, but it is insufficient to cover all expenses. The treasury liquidation was unexpected and severely impacted budget decisions. Subsequently, the Drift attack incident depleted the remaining funds and personal capital. Treasury users affected by the Drift attack will receive recovery tokens when distributed by the Drift team. The founder stated that in hindsight, the project should have been shut down earlier and apologized for this.

According to The Block, JPMorgan analysts have stated that despite the overall recovery of the cryptocurrency market following the Iran conflict, Ethereum and altcoins continue to underperform Bitcoin. The analysts believe that unless there is a substantial improvement in network activity, DeFi, and real-world applications, this trend that began in 2023 is unlikely to change.The analysts pointed out that the spot Bitcoin ETF has recovered about two-thirds of the previously withdrawn funds, while the spot Ethereum ETF has only recovered about one-third. CME futures positions indicate that institutions are rebuilding their Bitcoin exposure more aggressively than Ethereum, with Bitcoin futures positions nearly fully restored, while Ethereum futures positions remain below previous levels.The analysts also questioned whether the upcoming Ethereum upgrade could effectively boost network activity. They noted that upgrades over the past three years have primarily reduced Layer 2 transaction costs, leading to lower Ethereum network fees, a weakened token burn mechanism, and accelerated net supply growth, which has undermined ETH's price support.Regarding altcoins, the analysts pointed out that poor liquidity, insufficient market depth, limited growth in DeFi activity, and repeated hacking incidents have eroded confidence and hindered the allocation of new capital.

JPMorgan analysts stated that despite the overall recovery of the cryptocurrency market after the Iran conflict, Ethereum and other altcoins continue to underperform Bitcoin. This trend, which has formed since 2023, may be difficult to reverse in the short term unless there is a significant improvement in network activity, DeFi, and real-world applications.The report pointed out that, based on spot ETF fund flows and institutional futures positions, the recovery of Bitcoin is stronger than that of Ethereum. The spot Bitcoin ETF has recovered about two-thirds of the previous outflows, while the spot Ethereum ETF has only recovered about one-third. At the same time, CME futures data shows that institutional investors are more actively rebuilding their exposure to Bitcoin, with Bitcoin futures positions nearly fully restored, while Ethereum futures positions remain below previous levels.JPMorgan believes that the relative weakness of ETH and altcoins against Bitcoin may continue due to the lack of stronger on-chain fundamentals and real-world application support.

According to monitoring by Hyperinsight, in the past two hours, Ma Ji Huang Li Cheng has once again rolled over and increased his ETH long position by about 550 units, raising the average entry price and pushing the liquidation price up to $2,220. The current price of ETH is only $47 away from its liquidation line, and the $20.4 million long position has become the closest ten-million-level ETH long to liquidation on the Hyperliquid platform since Ma Ji last fully exposed all funds on March 26, having accumulated a deposit of $1.195 million to the platform.As of the time of writing, the actual funds in the account are only about $850,000. Frequent rolling and trading operations over the past one and a half months have not only failed to accumulate profits but have instead resulted in a net loss of about $345,000. Currently, this address holds a $20.4 million ETH long position and a $4 million BTC long position, with a total unrealized loss of about $500,000.

U.S. Judge Margaret M. Garnett in New York postponed the ruling on Aave's emergency application on Wednesday, which aims to unfreeze $71 million in ETH related to the Kelp DAO hacking incident, and requested both parties to submit supplemental briefs before the hearing on June 5. Aave is attempting to reclaim the $71 million in ETH frozen on Arbitrum to assist in the asset recovery efforts from this hacking incident—Kelp DAO suffered losses of up to $293 million from the hack, making it one of the most severe security incidents in the DeFi space this year.However, the U.S. law firm Gerstein Harrow LLP submitted a restraining order to the court in early May, claiming that its client has rights to the aforementioned funds. Aave then filed an emergency motion to lift the freeze, warning that if the funds are not released in a timely manner, it could lead to user liquidations and potentially impact the entire DeFi market. Judge Garnett noted in her ruling that Aave failed to adequately explain how user funds would incur "compound losses" if the restraining order remained in place. She also acknowledged the complexity of the case, the risks faced by the victims, and requested both parties to provide supplemental statements on six key issues, including: whether the hacking transaction is subject to New York state sanctuary principles, the legal distinctions between fraud and theft and what rights the hacker has over the stolen assets, which laws apply to determine the priority of claims for frozen assets, whether constructive trusts are an appropriate remedy, and whether Aave or Arbitrum can identify individual victims and proportionally return assets. Both parties must submit supplemental briefs by May 22.Meanwhile, the overall compensation work for Kelp DAO is progressing. Kelp and Aave announced on Tuesday that the rsETH held by the hacker has been destroyed on Arbitrum, and approximately $278 million in loss tokens will be restored within the next two weeks through the funds of the Aave Recovery Guardian multi-signature wallet. Once the relevant smart contracts are reactivated, all functions of rsETH will return to normal.

Solana treasury company DeFi Development Corp reported that despite an expanded loss in the first quarter, the per-share holding of SOL increased from 0.0322 to 0.0670 over the past year, a growth of 108%. As of May 13, the company holds approximately 2.2946 million SOL and equivalents.CEO Joseph Onorati stated that the company achieved growth through strategies such as internal staking, operating joint validation nodes in collaboration with Bonk, and deploying over 25% of the treasury on-chain, and believes that the strategy is a starting point rather than a ceiling. The company reported a revenue of $2.66 million in the first quarter, a year-on-year increase of 827%; the net loss was $83.4 million, compared to $778,000 in the same period last year, mainly impacted by the decline in SOL prices.

According to crypto journalist Eleanor Terrett, on the eve of the U.S. Senate Banking Committee's review of the "Clarity Act," committee members submitted over 100 amendments last night. The DeFi advocacy organization @fund_defi characterized some of these amendments as "anti-DeFi amendments," believing they would harm the rights of DeFi technology, users, and developers, and called on supporters to urgently lobby senators to oppose them.It is reported that the aforementioned amendments were jointly proposed by Democratic senators Cortez Masto, Andy Kim, Chris Van Hollen, Warren, and Jack Reed, targeting the core DeFi protection provisions in the bill, including the Blockchain Regulatory Certainty Act (BRCA), non-controlling software developer protections, DeFi front-end protections, tokenization provisions, and proposed expansions of BSA/AML compliance obligations for developers and digital asset businesses.

Aave CEO Stani tweeted that the latest draft of the market structure bill in the United States has been released. This bill can provide strong legal protection for DeFi developers in the U.S., allowing them to confidently build and maintain decentralized protocols without being forced to bear heavy obligations that are only suitable for centralized models. If the U.S. successfully establishes this framework, other regions around the world will follow.Stani emphasized that regulatory clarity is more important for DeFi than yield. The passage of the Clarity Act is expected to bring significant tailwinds to DeFi, similar to what the Genius Act has done for stablecoins.

The on-chain financial application Legend has announced that it will gradually shut down the company and product services. The team stated that Legend initially hoped to make it easier for mainstream users to access DeFi's cross-chain exchange, yield generation, and payment functions through a simpler product interface. Although the product gained a number of real users, the growth scale did not reach the level required for long-term sustainable operation, so shutting down the business is the most appropriate decision for the team and investors.Legend stated that its biggest lesson learned is that mainstream users do not care whether the product is "on-chain"; they are more concerned about yields, faster payment experiences, and greater control over their funds. The team believes that truly successful products do not explain cryptographic technology to users but instead completely hide it behind the experience. According to the announcement, Legend has stopped new user registrations, and existing users must complete fund withdrawals before the application shuts down on July 12. The official team will continue to remind users to withdraw funds via email and notifications over the next 60 days, and will retain relevant documentation pages for a period of time after the shutdown.

Avant posted on platform X that after communicating with multiple stakeholders, partners, and market trust figures, and based on an assessment of market conditions, it has decided to postpone the TGE until mid-September. Avant stated that current DeFi tokens are under significant pressure, and there have been several protocol vulnerability incidents in the field in recent months. Although Avant has maintained growth during this period, it is still indirectly affected by category pressures.Avant indicated that it expects the market to recover and will advance multiple collaborations during this time, continue TVL growth, and expand products. Points accumulation will stop on May 15, and the allocations that users have received are protected, allowing participation in the subsequent TGE. The Avant team will hold a public Space on Thursday at 2 PM Eastern Time.

Coinbase has expanded its on-chain crypto lending product, adding support for Solana (SOL), allowing users to borrow up to $100,000 by collateralizing SOL. This lending service is based on the integration of Coinbase with the DeFi lending protocol Morpho on the Base network, which previously supported collateralized lending for crypto assets like BTC and ETH.Ben Shen, Head of Financial Services and Loyalty Products at Coinbase, stated that the addition of SOL collateral is an important step for Coinbase to become "the best platform for trading and holding Solana," and reflects its strategy to build an "Everything Exchange." Data shows that since the launch of this crypto lending product last year, Coinbase's cumulative loan issuance has exceeded $2.3 billion. Among these, Bitcoin remains the primary collateral asset, with a cumulative loan amount of $2.17 billion; ETH collateralized loans are about $110 million, and XRP is $31.6 million, followed by assets like cbETH, DOGE, ADA, and LTC.Last month, Coinbase also expanded this lending business to the UK market, continuing to advance its on-chain financial services layout. Although Coinbase announced a net loss of $394.1 million in the first quarter last week and laid off about 14% of its workforce, CEO Brian Armstrong still stated that in the future "all finance will migrate on-chain," and Coinbase is positioning itself around this trend. Several institutions, including Bernstein, Benchmark, and Rosenblatt, have recently maintained a "buy" rating on Coinbase stock, with Bernstein believing that Coinbase is gradually validating the feasibility of its "Everything Exchange" strategy.

The U.S. Senate Banking Committee has released the first updated complete draft of the CLARITY Act since January of this year. The new draft has made significant adjustments in several key chapters.These include: a major rewrite of Chapter 1 concerning definitions, the authority of the U.S. Securities and Exchange Commission (SEC), and other content; the addition of insider trading provisions in Section 109; updating "joint control" to "coordinated control" in Chapter 2; rewriting Section 301 to further clarify the regulatory boundaries between DeFi and CeFi; updating Section 404 to incorporate the compromise proposal from Tillis and Alsobrooks; adjusting Section 505 to narrow the scope of SEC's authority limitations in the tokenization field; and restructuring the bankruptcy and insolvency framework in Sections 701 and 702. Additionally, Section 904 is a new addition, titled the "Build Now Act."Alex Thorn also pointed out that the protective provisions for developers in the Blockchain Regulatory Certainty Act in Section 604 remain largely intact, with only minor modifications that do not weaken its core protective content.