Deeper Liquidity and Institutional Flow May Calm Crypto Volatility, Says Solstice CEO

Ben Nadareski, chief executive of Solana‑based DeFi platform Solstice, told Cointelegraph’s Chain Reaction show that crypto markets are becoming less prone to the sharp price swings seen in 2017 and 2021. He attributes the shift to deeper liquidity across major trading pairs and a larger share of institutional capital.

Liquidity growth linked to lower volatility

A December 2025 analysis by Glassnode and Fasanara Digital found that Bitcoin’s one‑year realized volatility fell from 84.4 % to 43 %. The report linked the drop to increased market depth and institutional involvement. Daily Bitcoin spot volumes also rose, ranging from $8 billion‑$22 billion compared with $4 billion‑$13 billion in the previous cycle.

Institutional capital reshaping market cycles

Industry voices echo Nadareski’s view. In March, SkyBridge Capital partner Anthony Scaramucci noted that institutional investors and spot Bitcoin ETF inflows have muted Bitcoin’s traditional four‑year cycle, though he cautioned that the cycle has not vanished entirely.

Solana stablecoins poised for rapid expansion

Nadareski projected that the value of stablecoins on Solana could climb from the current roughly $16 billion to between $50 billion and $100 billion within five years, driven by fintech adoption and Solana’s low‑fee, high‑speed infrastructure.

Supporting this trend, CEX.IO data for Q1 2026 showed stablecoins accounted for 75 % of total crypto trading volume—the highest share on record—while overall transaction volume exceeded $28 trillion.

Implications for future bull runs

With deeper markets and more institutional money, future crypto bull runs may experience smoother price trajectories, reducing the extreme fluctuations that have historically deterred broader participation.