Crypto Bear Market? These Reports Say the Industry Has Never Been Stronger
Stablecoin quantity hit a document $1.79 trillion in June, at the same time as the tokens’ whole provide shrank. The cut up captures a market pricing crypto for a downturn whereas its utilization retains climbing.
A Bitwise report, Visa’s on-chain information, and new possession figures level the identical manner. Stablecoin transfers and prediction markets hit information at the same time as the Bitwise 10 Large Cap Crypto Index fell 15.4%.
Prices Fell, But the Plumbing Kept Growing
The second quarter was crypto’s third straight shedding quarter, the longest run since 2022. Spot Bitcoin (BTC) exchange-traded funds posted their worst quarter of outflows. On-chain exercise and buying and selling quantity slipped.
Yet the Bitwise report argues the market has it backwards. Crypto is being priced for a bear market, it says, regardless that the trade is roughly twice its 2022 dimension. Deeper liquidity and extra establishments now sit on-chain.
The hole exhibits up in the fundamentals. Measured towards the 2022 low, Ethereum (ETH) transaction exercise is up about 13 instances. Value locked in decentralized finance has climbed greater than 60%, and stablecoin belongings have roughly doubled.
Prices nonetheless lagged. The flagship crypto index fund misplaced floor, with eight of its 10 holdings in the purple.
That divide has reopened the query of whether or not the market has already discovered the bear market bottom.
Stablecoin Volume and Derivatives Led the Quarter
Stablecoins settled about 2.3 instances Visa’s fee quantity over the previous 12 months, Bitwise mentioned. In June, transfers reached the $1.79 trillion document, in line with Visa Onchain Analytics. Rising institutional stablecoin volume saved settlement close to all-time highs.
A shrinking stablecoin provide as soon as signaled bother. Terra’s 2022 collapse erased tens of billions and froze the market. This time provide eased whereas transfers set a document, a really completely different backdrop.
USD Coin (USDC) dealt with about two-thirds of that quantity. Regulated {dollars} are taking share as establishments lean in.
Trading informed an analogous story. June spot quantity throughout main exchanges fell roughly 5% from May, whereas derivatives quantity rose about 4%. Active merchants stayed engaged at the same time as informal patrons stepped again.
Tokenized Assets and Prediction Markets Set Records
Tokenized real-world assets climbed 50.3% this 12 months to $32.89 billion, the report mentioned. Prediction market quantity hit a document $43.2 billion in the quarter, near 18 instances its stage a 12 months earlier.
Crypto equities held up too. The Bitwise Crypto Innovators 30 Index rose 30.6%. Apps resembling Hyperliquid, PancakeSwap, and Aave every earned near $900 million in income over the previous 12 months.
Advisers more and more favor stablecoins and tokenization over direct Bitcoin bets. Individuals nonetheless maintain about two-thirds of Bitcoin provide.
However, establishments and funds purchased roughly 829,000 BTC in 2025, whereas retail wallets shed about 696,000, in line with River.
Bitwise framed the cut up between value and progress as the setup for the subsequent cycle.
“That basis gained’t cease the winter, nevertheless it determines what grows in the spring,” Matt Hougan wrote.
The subsequent few quarters will check whether or not utilization pulls costs up or weak costs sap momentum. For now, the information exhibits an trade nonetheless rising whereas its market worth waits to catch up.
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