coindesk.com
Trading $XRP$1.8736 and solana $SOL$126.28 felt twice as bumpy as bitcoin $BTC$88,832.48 in 2025, dashing hopes of market maturation beyond the largest cryptocurrency.
Realized volatility over the past 365 days hit 87% for solana and 80% for $XRP compared with $BTC's calmer 43%, according to data tracked by CoinDesk Indices. $BNB $BNB$867.04 clocked 55% and ether ETH$2,985.70 77%.
Altcoins have tended to be more volatile than bitcoin over the years. Still, the latest data stands out because it shows that exchange-traded funds and other alternative investment vehicles tied to these tokens need to pull in deeper liquidity to match $BTC's chill.
Except for $BNB, the four largest coins by market value (excluding stablecoins) have CME futures and U.S.-listed spot ETFs as proxies for institutional activity.
$XRP ETFs have pulled in over $1 billion in investor money since their debut in November, according to data source SoSoValue. The equally nascent $SOL ETFs have amassed $763.91 million.
If the demand remains strong in the coming year, it could dampen price volatility, as observed in bitcoin.
Bitcoin spot ETFs, which debuted in January 2024, have attracted $56.96 billion in net inflows to date. This surge has fueled interest in advanced products such as covered calls on those ETFs, leading to a steady decline in volatility in $BTC this year.
The same can be said about ether ETFs, which started trading the following July and have seen net inflows of $12.4 billion since their debut in mid-2024.