The stablecoin universe continues to shrink and a sustained recovery in crypto prices is unlikely until this stops, JPMorgan said in a research report Thursday. A stablecoin is a type of cryptocurrency that is pegged to another asset, such as the U.S. dollar. “Headwinds from the U.S. regulatory crackdown on crypto, the unsettling of banking networks for the crypto ecosystem and the reverberations from last year’s FTX collapse are weighing on the stablecoin universe which continues to shrink,” analysts led by Nikolaos Panigirtzoglou wrote.