JPMorgan issued a report observing that growth across the cryptocurrency ecosystem decelerated in January 2025. Despite this slowdown, the market capitalization of cryptocurrencies remains high, with activity still at twice the levels seen before the election.

The appreciation in market cap was notably concentrated in Bitcoin (BTC), Solana (SOL), and XRP (XRP), while the average daily volume (ADV) saw declines that were broad-based throughout the ecosystem.

The report also highlighted a relative downturn in non-token sectors such as decentralized finance (DeFi) and non-fungible tokens (NFTs) in terms of month-over-month performance across various key performance indicators (KPIs). This mitigated the surge that these sectors experienced in December.

JPMorgan analysts believe that the election served as a catalyst for increased activity and that token prices are now settling into a new equilibrium during the post-election period.

In the first few weeks since the new administration took office, the cryptocurrency operating environment has seen some positive changes from a regulatory standpoint.

Notably, the Securities and Exchange Commission (SEC) under new leadership has established a task force and rescinded Statement of Accounting Bulletin (SAB) 121, which is seen as a step forward in cryptocurrency regulation.

Additionally, the report mentioned the one-year anniversary of the launch of spot U.S. bitcoin exchange-traded products (ETPs), which occurred in mid-January 2024.

Furthermore, an update was provided on the timeline for Ethereum 's next major upgrade, named Pectra, which is expected to take place in March 2025.

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