Crypto markets may be showing early signs of stabilization despite a lackluster start to the second quarter, according to a new report from Fidelity Digital Assets.
In its Q2 2026 Signals Report, the firm said that while prices have remained subdued and largely range-bound, underlying on-chain indicators and network activity are beginning to improve. Metrics such as unrealized profitability, momentum and usage trends all point to strengthening conditions beneath the surface.
Fidelity framed its analysis beyond simple price movements, instead examining risk dynamics, investor positioning and broader market cycles across major assets including bitcoin (BTC), ether (ETH) and solana (SOL).
Bitcoin continues to stand out as the market’s primary source of stability during this consolidation period. Rising dominance and solid unrealized profit levels suggest that capital remains concentrated in the most liquid and established cryptocurrency.
Analysts led by Daniel Gray noted that bitcoin’s dominance has been gradually increasing after declining through the latter half of 2025. At the time of writing, BTC was trading around $77,000.
Recent months have been marked by choppy price action across the crypto market, with major tokens struggling to break out of narrow ranges. A challenging macroeconomic backdrop has weighed on sentiment, including persistent inflation, shifting expectations for central bank policy and bouts of volatility in global equities. Ongoing regulatory scrutiny in key jurisdictions has added further uncertainty.
Geopolitical tensions, including conflicts in Eastern Europe and the Middle East, along with trade disputes between major economies, have also contributed to intermittent risk-off behavior, limiting sustained upward momentum.
Despite these headwinds, Fidelity noted that current momentum and profitability signals are consistent with a corrective phase, which could ultimately help build a more stable market foundation.
The report also highlighted a growing divergence between price action and underlying network activity. Ethereum and Solana, in particular, continue to see steady usage, indicating that demand at the protocol level remains resilient even as valuations lag.
Taken together, Fidelity’s findings suggest the crypto market is still in a recovery phase, but with structural improvements underway that have yet to be fully reflected in prices.
