The cryptocurrency market has been undergoing a consolidation phase since the beginning of 2026, characterized by range-bound prices and a global environment marked by uncertainty. But behind this apparent calm, early signs of stabilization are beginning to emerge, according to a new report from Fidelity Digital Assets.
In its Q2 analysis, the company suggests going beyond simple price trends to take a deeper read into the current cycle by evaluating metrics such as unrealized profitability (NUPL), market momentum, and network usage. In this context, Bitcoin (BTC) remains the mainstay of ecosystem resilience.
One of the central findings is that the recovery is not uniform. Bitcoin’s NUPL is 0.21, which is in the intermediate “hope and fear” zone, indicating that investors are maintaining reasonable profits with no signs of euphoria.
In contrast, Ether (ETH)’s NUPL is -0.12 and Solana (SOL)’s -0.67, reflecting cumulative losses among participants. This difference confirms that While capital is concentrated in BTC, the rest of the market continues to be in a correction phase. In line with this, Bitcoin’s dominance has returned to an upward trend after a dip in late 2025, reinforcing the market’s role as a safe-haven asset itself. At the time of this report, BTC was trading around $77,000 amid sideways momentum.
Historically, Bitcoin’s current NUPL levels have preceded positive returns over the medium term, suggesting that the market may be in the early stages of a restructuring.
Network Metrics: Powerful Fundamentals of Mixed Signal
This report analyzes not only prices but also activity on the network. Ethereum saw a 34% quarterly increase in transactions to more than 2 million daily, while active addresses grew at a similar rate. For Solana, the growth was even more pronounced, with a 50% increase in active addresses and a 35% increase in new addresses. Nevertheless, Fidelity warns that some of this increase could be driven by small transactions Or even “spam” type activity that lower commissions prefer, and the actual demand needs to be clarified.
In the case of Bitcoin, the indicator reflects structural strength with recent corrections. Although the long-term upward trend remained unchanged, the hash rate fell below 1,000 EH/s due to the effects of energy costs and weather phenomena. This suggests that the network remains robust even in environments with low on-chain transaction dynamism. In order, Momentum indicators indicate slowing of uptrendcoinciding with an adjustment phase within the broader cycle.
The performance of key assets supports this diagnosis. So far in 2026. Bitcoin is down nearly 25%, Ethereum is down 31%, and Solana is down 38%. In addition to this, more than $4.6 billion in liquidation events occurred between January and February, increasing downward pressure and forcing a deleveraging process in the market.
The data show relevant differences. Although prices remain subdued, activity on networks such as Ethereum and Solana continues to grow. This indicates that structural demand for network usage remains, although it is not yet fully reflected in valuations.
Macro and geopolitical pressures limit rebound
The macroeconomic situation also plays a decisive role. Sustained inflation, uncertainty over U.S. interest rate policy, and traditional market volatility are reducing risk appetite. Add to this geopolitical tensions, such as the war between Russia and Ukraine and the conflict in the Middle East, and trade tensions between major economic powers, and these factors are creating a cycle of risk aversion and limiting the sustained recovery of digital assets.
Fidelity argues that current indicators are consistent with a correction phase that may be laying the foundations for a stronger recovery.
Taken together, the data reflects a market that remains in transition. Bitcoin continues to serve as the primary support for the ecosystem, concentrating liquidity and setting the pace of the market. However, to confirm a new bullish cycle, we will need to observe broader participation of remaining assets, more favorable macroeconomic conditions, and above all, that these signals begin to be translated into prices on a sustained basis.
(Tag Translation)Bitcoin (BTC)
