Volatility Declines as Crypto Market Structure Evolves

The era of extreme price swings in cryptocurrency markets may be coming to an end, according to Ben Nadareski, CEO of Solana-based DeFi platform Solstice. Speaking on Cointelegraph's Chain Reaction program, he argued that the increasing liquidity and institutional capital are reshaping market structure.

Nadareski noted that thicker liquidity across major trading pairs is absorbing buying and selling pressure with less dramatic price impact than in previous cycles. He stated that 'we don't want to go through 2017 or 2021' when referring to the massive fluctuations experienced during those times.

A December 2025 report from Glassnode and Fasanara Digital found that Bitcoin's one-year realized volatility fell from 84.4% to 43%, attributing this decline to expanding market depth and institutional participation.