According to CoinDesk, JPMorgan said in a research report on Thursday that decentralized finance (DeFi) and non-fungible token (NFT) activities have recovered in recent months as expectations of approval of U.S.-listed spot Bitcoin exchange-traded funds (ETFs) have improved sentiment in the cryptocurrency market.

The growth comes after nearly two years of slowing growth, “therefore leading to optimism that the worst may be over in terms of the medium-term trajectory of DeFi/NFT activity,” the report said.

The report said the Ethereum blockchain does not appear to have benefited from the recent resurgence in DeFi and NFT activity and faces issues related to "network scalability, low transaction speeds and high fees," as well as increased competition from other first-layer chains.