JPMorgan has stated that the shrinking stablecoin universe is hindering the possibility of a sustained recovery in crypto prices. The regulatory crackdown on crypto in the US, the unsettling of banking networks for the crypto ecosystem, and the reverberations from last year’s FTX collapse are all contributing to this trend.

Cryptocurrency prices have slumped in the past month, with the industry's overall market cap dropping from $1.26 trillion on April 13 to $1.089 trillion. Tether's dominance has been boosted by the US Securities and Exchange Commission (SEC) ban on rival stablecoin Binance USD (BUSD).