What to know:
- Bitwise 10 Large Cap Crypto Index decreased 15.4% during Q2, making it the longest losing streak of crypto since 2022.
- Prediction market volume set an all-time high of $43.2 billion, whereas tokenized real-world assets saw a growth of 50.3% to $32.89 billion.
- Tokenized real-world assets reached $32.89 billion after 50.3% YTD growth, while Hyperliquid, PancakeSwap, and Aave each generated roughly $900 million in annual revenue.
Bitwise Crypto Market report revealed that the crypto sector recorded its third consecutive quarter of negative returns in Q2 2026, marking the longest losing streak since 2022. The asset manager said the Bitwise 10 Large Cap Crypto Index fell 15.4% during the quarter, with eight of its 10 constituents ending lower. Outflows from US spot Bitcoin ETFs also added pressure on sentiment despite the improvements in blockchain adoption and the fundamentals of the networks in the industry.
The Bitwise Crypto Market analysis highlighted that investor sentiment remained weak throughout the quarter as institutional demand slowed and ETF outflows accelerated. However, the company noted that the blockchain foundation was getting stronger despite the falling value of cryptocurrencies.
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Bitwise Crypto Market Highlights Growing Blockchain Adoption
The asset manager reported that the trading volume of prediction markets set an all-time high of $43.2 billion during the quarter due to the rising popularity of decentralized forecast markets.
The volume of tokenized real-world assets grew 50.3% to $32.89 billion year-to-date, and the volume of stablecoin settlements grew to about 2.3 times higher than that of Visa. These figures suggest blockchain-based financial services continue gaining traction despite declining cryptocurrency prices and weaker investor sentiment.
In addition, the report noted that the volume of transactions on the Ethereum network became almost 13 times higher than during the 2022 bear market period. The TVL in decentralized finance protocols increased by more than 60%, and the amount of stablecoin assets under management almost doubled from market lows.
Industry Fundamentals Remain Strong Despite Price Weakness
Bitwise crypto market noted that leading decentralized applications continued generating significant revenue despite weaker market conditions. Hyperliquid, PancakeSwap, and Aave each made about $900 million annually, indicating that users were still participating in decentralized finance even as the price of tokens was low.
Moreover, Bitwise crypto market also compared the current market environment to the cryptocurrency bear market of 2022, concluding that things are much better now from the perspective of the fundamental factors in the industry. The volume of transactions on the Ethereum blockchain has grown by 13 times since then, total value locked in decentralized finance has grown by 60% or more, and the amount of assets under management of stablecoins has almost doubled.
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