Most Stable and Unstable Cryptocurrencies: July 2025 Report

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The world of digital assets continues to evolve, marked by rapid innovation, regulatory scrutiny, and dramatic market swings. While 2022 was a turbulent year for the crypto industry—often referred to as the "crypto winter"—2023 brought cautious optimism. As we look ahead to mid-2025, understanding which cryptocurrencies exhibit stability and which remain highly volatile is crucial for informed investment decisions.

This report analyzes key performance metrics from April 2022 to April 2023, a period defined by high-profile exchange collapses, regulatory developments, and shifting investor sentiment. By examining annualized volatility, we identify the most and least stable digital assets in the market today.

How We Conducted the Research

To determine stability, we analyzed price data from CoinMarketCap.com, focusing on:

We calculated annualized volatility using the standard deviation of daily logarithmic returns (LN(today’s price/yesterday’s price)). A higher volatility percentage indicates greater price instability, while lower values suggest relative steadiness.

Only assets within the top 100 by market cap (excluding stablecoins) and with disclosed market data were included. The final dataset reflects conditions as of April 26, 2023.

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Key Findings: The Most and Least Stable Cryptocurrencies

UNUS SED LEO (#LEO) – The Most Stable Cryptocurrency

Despite industry-wide turmoil, UNUS SED LEO (LEO) emerged as the most stable cryptocurrency during our analysis period, with an annualized volatility of just 53%. Issued by Bitfinex, LEO demonstrated resilience even after the U.S. Commodity Futures Trading Commission (CFTC) fined its parent company $1.5 million in 2021 for past unregistered trading activities.

In early 2022, LEO surged nearly 60% following the U.S. Department of Justice’s seizure of $3.6 billion in Bitcoin linked to the 2016 Bitfinex hack—funds tied to LEO’s creator, iFinex. However, investor sentiment turned bearish by late 2022, driving the token’s price down from a high of $8.15 to around $3.90.

Still, its underlying utility and exchange integration helped maintain relative price consistency compared to peers.

FTX Token (#FTT) – The Most Volatile Cryptocurrency

At the other extreme, FTX Token (FTT) recorded the highest volatility at 218.9% annualized, unsurprisingly due to the catastrophic collapse of the FTX exchange in November 2022. Once a major player backed by celebrity endorsements and Super Bowl ads, FTX filed for Chapter 11 bankruptcy amid allegations of fraud and mismanagement involving its founder, Sam Bankman-Fried.

Following the collapse, FTT’s value plummeted over 138%, with sharp rebounds tied to legal developments—such as Bankman-Fried’s plea of not guilty in January 2023 and rumors of FTX potentially reopening in April 2023. These events triggered wild price swings, cementing FTT’s status as the most unstable digital asset in recent history.

Other highly volatile tokens included Conflux (CFX) and Mask Network (MASK), both experiencing sharp spikes amid news-driven speculation despite broader market declines.

GateToken (#GT) and Bitcoin BEP2 (#BEP2) – Mid-Tier Stability

Rounding out the top three most stable cryptocurrencies were:

GT benefits from strong exchange backing and consistent utility within its ecosystem. Meanwhile, BEP2 mirrors Bitcoin’s price movements but is susceptible to sudden drops—such as the 5% decline in March 2023 triggered by concerns over Silvergate Capital, a crypto-friendly bank facing liquidity issues.

Stablecoins: Designed for Stability, But Not Risk-Free

Stablecoins are engineered to minimize volatility by pegging their value to fiat currencies like the U.S. dollar. Our analysis confirms this design works—most stablecoins showed significantly lower volatility than traditional cryptocurrencies.

Tether (#USDT) – The Most Stable Stablecoin

Tether (USDT) proved to be the most stable stablecoin during our study period, with a mere 0.88% annualized volatility. Despite briefly losing its dollar peg after FTX’s bankruptcy shook investor confidence in November 2022, USDT quickly recovered.

Analysts credit Tether’s resilience during the 2023 U.S. banking crisis—particularly after Silicon Valley Bank’s failure—as evidence of its robust backing mechanisms. As the third-largest cryptocurrency by market cap, Tether continues to serve as a safe haven during market turbulence.

Binance USD (#BUSD) – The Most Unstable Stablecoin

Conversely, Binance USD (BUSD) exhibited a surprisingly high annualized volatility of 90.7%, making it the least stable among major stablecoins. This spike was largely driven by regulatory pressure from the U.S. Securities and Exchange Commission (SEC), which intensified scrutiny on stablecoin issuers in late 2022 and early 2023.

The uncertainty surrounding BUSD’s compliance status led to increased selling pressure and temporary de-pegging events, highlighting that even so-called “stable” assets can face significant risks under stress.

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Why Stability Matters in Crypto Investing

While high volatility can offer opportunities for short-term gains, it also increases risk—especially for long-term investors. The events of 2022 serve as a stark reminder: even established assets like Bitcoin saw a 61.1% annualized volatility, reflecting global macroeconomic instability and waning investor confidence.

Key takeaways for investors:

Frequently Asked Questions (FAQ)

Q: What makes a cryptocurrency stable?
A: Stability typically comes from strong fundamentals, consistent trading volume, transparent governance, and real-world utility. Exchange-backed tokens like LEO often benefit from integrated ecosystems that support demand.

Q: Can stablecoins lose their peg?
A: Yes. If a stablecoin lacks sufficient reserves or faces sudden redemption pressure (e.g., during a crisis), it may temporarily lose its peg. Examples include USDT in late 2022 and UST in May 2022.

Q: Is low volatility always better?
A: Not necessarily. Low volatility suggests safety but may also mean limited upside potential. High-volatility assets can deliver outsized returns—but come with greater risk.

Q: How does regulation affect crypto stability?
A: Regulatory clarity can boost confidence and reduce uncertainty, leading to lower volatility. Conversely, aggressive enforcement actions—like those against BUSD—can trigger sell-offs and instability.

Q: Was 2022 really the worst year for crypto?
A: In terms of market value destruction—over $2 trillion lost—and institutional failures (e.g., FTX, Celsius)—yes. It was a reckoning that forced the industry toward greater transparency and accountability.

Q: What should I watch for in 2025?
A: Look for regulatory milestones, adoption trends (especially in Asia), central bank digital currencies (CBDCs), and technological upgrades like Ethereum’s scalability improvements.

Core Keywords Identified

Final Thoughts

The contrast between stability and chaos in the crypto market underscores the importance of due diligence. While tokens like LEO and USDT demonstrated resilience under pressure, others like FTT became cautionary tales of unchecked growth and poor governance.

As we move through 2025, investors must remain vigilant. Markets will continue to react to innovation, regulation, and macroeconomic forces. By focusing on proven metrics like volatility and understanding underlying risks, you can navigate this dynamic landscape with greater confidence.

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