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Crypto’s wild boom-and-bust cycles are fading, Solstice CEO says
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The extreme boom-and-bust cycles that have defined the cryptocurrency market for years may be a thing of the past, according to Ben Nadareski, CEO of the Solana-based decentralized finance platform Solstice. He argues that deeper liquidity and growing institutional participation are fundamentally changing market structure, leading to more stable future bull runs. This perspective marks a significant shift from the narrative of crypto as a purely speculative and highly volatile asset class.
Nadareski shared his views on Cointelegraph's Chain Reaction show, stating that liquidity across major crypto trading pairs has increased significantly, even during bear markets. This improvement helps reduce the sharp price swings seen in previous cycles, such as those in 2017 and 2021. The market is increasingly attracting institutional capital and household wealth, moving beyond its speculative roots.
Data from a December 2025 report by blockchain analytics firm Glassnote and asset manager Fasanara Digital supports this view. The report found that Bitcoin’s one-year realized volatility had fallen from 84.4% to 43%. This reduction is partly attributed to growing market depth and institutional participation, which brings greater stability to prices.
The report also highlighted a surge in daily Bitcoin spot volumes, which increased to between $8 billion and $22 billion a day from $4 billion to $13 billion during the previous market cycle. These deeper markets are seen as a key factor in tempering the notorious volatility of crypto assets. Other industry figures, like SkyBridge Capital's Anthony Scaramucci, have echoed this sentiment.
Scaramucci has stated that Bitcoin’s traditional four-year cycle has been “muted” by institutional investors and the influx from spot Bitcoin ETFs. However, he cautions that the cycle has not disappeared entirely. The increasing presence of professional, long-term capital is reshaping the market's rhythm and risk profile.
Looking ahead, Nadareski also made a specific prediction for the Solana network. He forecasts that the value of stablecoins on Solana could rise above $50 billion and approach $100 billion over the next five years. He cites growing adoption among fintech companies and Solana’s advantages in transaction speed and low fees as driving factors.
This growth in stablecoins is crucial, as they have become a massive source of liquidity. According to CEX.IO data, stablecoins accounted for 75% of total crypto trading volume in Q1 2026, a record high, with transaction volume surpassing $28 trillion. This deepening liquidity foundation suggests the market is maturing, potentially fulfilling Nadareski’s vision of less volatile cycles.
