Trading and Solana experienced volatility levels twice as severe as Bitcoin in 2025, disrupting expectations for a more stable market beyond the largest cryptocurrency.
Realized volatility over the last year reached 87% for Solana and 80% for XRP, compared to Bitcoin’s more subdued 43%, based on data from CoinDesk Indices. BNB demonstrated a 55% volatility, while Ether recorded a 77% volatility.
Historically, altcoins have exhibited greater volatility than Bitcoin. However, the recent data highlights a significant need for exchange-traded funds and other alternative investment products linked to these tokens to increase liquidity to reach Bitcoin’s steadiness.
With the exception of BNB, the four largest cryptocurrencies by market capitalization (excluding stablecoins) have CME futures and U.S.-listed spot ETFs as indicators of institutional involvement.
XRP ETFs have attracted over $1 billion in capital since their introduction in November, according to SoSoValue data. The relatively new SOL ETFs have garnered $763.91 million.
If the interest continues strongly over the next year, it may reduce price volatility, similar to what has been seen in Bitcoin.
Bitcoin spot ETFs, launched in January 2024, have pulled in $56.96 billion in net flows so far. This influx has sparked interest in advanced products like covered calls on those ETFs, contributing to a steady decline in BTC’s volatility throughout the year.
A similar trend is evident with Ether ETFs, which began trading in the following July and have experienced net inflows amounting to $12.4 billion since their mid-2024 launch.
