Volatility Evolution for Digital Assets

For institutional investors, volatility remains a key barrier to investing in digital assets. We’ve discussed in the past how the volatility profiles of Bitcoin and Ethereum are now in line with popular tech stocks– but what about the rest of crypto?

We analyzed the evolution of volatility since TGE for tokens currently in the top 100 by market cap (excluding meme coins and with a trading volume requirement) and found a consistent downward trend in volatility as a token matures. While this is not necessarily a surprise, it serves to highlight the fact that the broader crypto market is indeed showing signs of maturation similar to Bitcoin and Ethereum.

Looking past price volatility and focusing on long-term potential is critical to capturing the upside of this market, which we believe extends far past the largest tokens of today. Volatility is transitory, transformational technology is enduring.