A recent recovery in decentralized finance and non-fungible tokens, though positive, is not yet strong or conclusive, according to JPMorgan.

"While we do not doubt this recent revival in DeFi/NFT activity is a positive sign, we believe it is too early to be getting excited about it," JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a report on Thursday. These are "only tentative signs of revival," they said.

After a slowdown of almost two years, NFT sales volume and DeFi total value locked have increased in recent months. The recovery has created "some optimism that the worst might be behind us in terms of the medium-term trajectory for DeFi/NFT activity," but it's premature to start feeling optimistic about it, according to the analysts.

That's because some recovery in DeFi …