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Solstice CEO: Deeper liquidity tames crypto volatility

Deeper liquidity reduces crypto boom-bust cycles; Bitcoin volatility drops; Solana stablecoins predicted to reach $100B.

  • Solstice CEO Ben Nadareski says deeper liquidity is reducing extreme boom-and-bust cycles in crypto
  • Bitcoin‘s one-year realized volatility has fallen from 84.4% to 43%, according to a Glassnode and Fasanara Digital report
  • Nadareski predicts Solana stablecoin market cap could surpass $50 billion and approach $100 billion within five years

Speaking on Cointelegraph’s Chain Reaction show, Solstice CEO Ben Nadareski said crypto markets are unlikely to return to extreme boom-and-bust cycles as deeper liquidity brings stability. Liquidity across major trading pairs has increased significantly even during bear markets, reducing the conditions that produced sharp price swings seen in previous cycles. He said crypto is increasingly a market for institutional capital and household wealth rather than speculative trading. Nadareski added, “We don’t want to go through 2017. We don’t want to go through 2021. We don’t want to go through these massive fluctuations.”

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A December 2025 report from Glassnode and Fasanara Digital supports this view, finding that Bitcoin’s one-year realized volatility fell from 84.4% to 43%. The firms attributed the decline partly to growing market depth and institutional participation. Meanwhile, daily Bitcoin spot volumes rose to between $8 billion and $22 billion from $4 billion to $13 billion in the previous cycle. Other industry participants, such as SkyBridge Capital managing partner Anthony Scaramucci, have also argued that institutional capital is muting traditional four-year cycles.

Nadareski, whose company operates within the Solana ecosystem, predicted growth in the network’s stablecoin market. He said the value of stablecoins on Solana could rise above $50 billion and approach $100 billion over the next five years, citing growing fintech adoption and Solana’s speed and low fees. Solana currently holds about $16 billion in stablecoin market capitalization, according to DefiLlama. Stablecoins accounted for 75% of total crypto trading volume in the first quarter of 2026, the highest share on record, while transaction volume surpassed $28 trillion.

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