Despite a subdued start to the second quarter, improving on-chain data and rising network activity suggest the crypto market may be regaining its footing, according to Fidelity Digital Assets.
In its Q2 2026 Signals Report released Monday, the firm said that while prices remain range-bound, underlying indicators point to early signs of stabilization beneath the surface. The report highlighted gains across several key metrics, including unrealized profits, market momentum and network usage.
Rather than focusing strictly on price action, Fidelity approached the market through a broader framework encompassing risk, positioning and cycle dynamics across bitcoin (BTC), ether (ETH) and solana (SOL).
Bitcoin continues to act as the market’s anchor during this consolidation phase. Metrics such as unrealized profit and market dominance indicate that capital remains concentrated in the most established and liquid digital asset.
“BTC dominance is gradually rising after trending lower in the second half of 2025,” analysts led by Daniel Gray noted. At the time of publication, bitcoin was trading near $77,000.
Crypto markets have delivered uneven performance in recent months, with major tokens largely moving sideways as investors contend with a complex macroeconomic environment. Persistent inflation, evolving expectations around central bank rate cuts and intermittent volatility in global equity markets have weighed on overall risk appetite. Meanwhile, continued regulatory pressure in the U.S. and abroad has added to uncertainty.
Geopolitical tensions in Eastern Europe and the Middle East, along with trade frictions among major economies, have also contributed to periodic risk-off sentiment, limiting sustained upside in digital assets.
Even so, Fidelity noted that current momentum and profitability trends are consistent with a corrective phase that could help establish a more durable market structure.
One key divergence highlighted in the report is the gap between price performance and network activity. Ethereum and Solana, in particular, continue to show steady usage, signaling that underlying demand remains intact despite lagging valuations.
Overall, the report suggests the crypto market is still in a recovery phase, but with structural improvements underway that may not yet be reflected in prices.
