A forecast says the cryptocurrency market is becoming less likely to repeat extreme surges and plunges as it did in the past.

Cointelegraph, a blockchain news outlet, reported on Monday that Solstice CEO Ben Nadarewski (벤 나다레스키) said expanding market liquidity and rising institutional participation are lowering volatility in digital assets.

Nadarewski, who leads the Solana-based decentralised finance platform Solstice, pointed to a sharp rise in liquidity across major cryptocurrency trading pairs. He said liquidity has become deeper than in the past even in bear markets, reducing the conditions that drove abrupt price swings in previous cycles.

Nadarewski said the nature of the cryptocurrency market has also changed. He said the market is shifting from speculative trading to a structure that brings in institutional money and household assets. "We do not want to go through 2017 again. The same goes for 2021," he said. "We do not want that kind of huge volatility."

The remarks come as broader institutional participation and deeper trading markets reshape the structure of the cryptocurrency market. Bitcoin market indicators also align with that trend. A report released in December 2025 by Glassnode and asset manager Pasanara Digital said bitcoin's one-year realised volatility fell to 43 percent from 84.4 percent. The two organisations cited market deepening and rising institutional participation as factors behind the change.

Spot trading has also expanded. The report estimated bitcoin's daily spot trading volume rose to $8 billion to $22 billion from $4 billion to $13 billion in the previous market cycle. It also confirmed that thicker trading has increased the market's capacity to absorb price shocks.

Other industry figures have also said institutional money is changing market cycles. SkyBridge Capital's Anthony Scaramucci said in March that bitcoin's four-year cycle has been "moderated" by institutional investors and inflows into spot bitcoin ETFs. He said the traditional cycle itself has not completely disappeared.

Nadarewski also mentioned potential growth in the stablecoin market in the Solana ecosystem. Citing wider adoption by fintech companies, Solana's fast processing speed and low fees, he forecast that Solana-based stablecoins could exceed $50 billion and approach $100 billion within the next five years.

Solana's stablecoin market capitalisation is currently about $16 billion. Stablecoins are also emerging as a core pillar of market liquidity. According to CEX.IO data, stablecoins accounted for 75 percent of total cryptocurrency trading volume in the first quarter of 2026, a record share, and trading volume exceeded $28 trillion.

The trend shows the cryptocurrency market is being reshaped around large pools of capital and payment-type assets rather than short-term speculation. Key points to watch will be how much further institutional inflows weaken existing market cycles, and how stablecoin liquidity affects price stability in major networks including bitcoin and Solana.