BlockBeats report, July 10: Bitwise released its Q3 2026 Crypto Market Review. The report shows that the Bitwise 10 Large-Cap Crypto Index fell 15.4% in the second quarter, with eight of its ten components declining; spot Bitcoin ETFs recorded their worst quarterly outflows; on-chain activity, trading volume, and DeFi assets all declined, while crypto market correlation with equities rose, marking the third consecutive quarter of negative returns—the longest consecutive downturn since 2022. However, the report also highlights several bright spots: prediction market trading volume reached $43.2 billion, nearly an 18-fold year-over-year increase; tokenized RWA grew 50.3% this year to $32.89 billion; the Bitwise Crypto Innovators 30 Index rose 30.6%; stablecoin settlement volume exceeded Visa’s by 2.3 times and holdings of U.S. Treasuries surpassed those of most countries; Hyperliquid, PancakeSwap, and Aave each generated approximately $900 million in revenue over the past year.
Bitwise notes that, compared to the 2022 bear market bottom, Ethereum transaction activity has grown approximately 13-fold, DeFi locked value has increased by over 60%, and stablecoin AUM has roughly doubled—only the price has not kept pace. The price reflects bear market valuations, but the industry’s scale is now twice what it was at the previous cycle’s bottom—deeper liquidity, stronger fundamentals, and Wall Street has entered on-chain.