{"id":4616,"date":"2026-07-10T21:50:31","date_gmt":"2026-07-10T21:50:31","guid":{"rendered":"https:\/\/blog.coinsignals.net\/?p=4616"},"modified":"2026-07-10T21:50:31","modified_gmt":"2026-07-10T21:50:31","slug":"bitwise-crypto-fundamentals-continue-to-strengthen-despite-third-consecutive-losing-quarter","status":"publish","type":"post","link":"https:\/\/blog.coinsignals.net\/index.php\/2026\/07\/10\/bitwise-crypto-fundamentals-continue-to-strengthen-despite-third-consecutive-losing-quarter\/","title":{"rendered":"Bitwise: Crypto Fundamentals Continue to Strengthen Despite Third Consecutive Losing Quarter"},"content":{"rendered":"\n
\n
\"\"<\/figure>\n<\/figure>\n\n\n\n

While cryptocurrency prices extended their decline for a third straight quarter, Bitwise says the industry\u2019s underlying fundamentals continue to improve, with adoption and network activity advancing even as market performance remains weak.<\/p>\n\n\n\n

In its Q2 2026 Crypto Market Review, the asset manager reported that its 10 Large Cap Crypto Index fell 15.4% during the quarter, marking the longest losing streak since 2022.<\/p>\n\n\n\n

Prices Remain Under Pressure as Adoption Grows<\/strong><\/p>\n\n\n\n

According to the report, eight of the index\u2019s ten assets ended the second quarter in negative territory.<\/p>\n\n\n\n

Cardano (ADA) posted the steepest decline, falling nearly 40% during the quarter and more than 56% since the start of the year. Ethereum and XRP dropped 24.66% and 20.79%, respectively, while Solana recorded a smaller quarterly decline of 10.87%. However, Solana\u2019s year to date loss widened to more than 40%.<\/p>\n\n\n\n

Bitcoin also struggled, recording its weakest June performance in four years after briefly falling below $60,000. At the time of the report, the leading cryptocurrency remained about 49% below its October 2025 all time high above $126,000, extending its downturn to roughly nine months.<\/p>\n\n\n\n

Only two assets in the index finished the quarter with gains. Hyperliquid (HYPE) surged 79%, while Stellar (XLM) advanced more than 10%. On a year to date basis, HYPE remained the standout performer with gains approaching 158%, whereas XLM was still down 6.71%.<\/p>\n\n\n\n

Separate data from CryptoQuant showed that roughly 40% of altcoins are trading near their all time lows. That figure climbed to almost 45% when Bitcoin briefly slipped below the $60,000 level.<\/p>\n\n\n\n

Market Activity Shows Mixed Picture<\/strong><\/p>\n\n\n\n

Bitwise noted that on chain activity, trading volumes, and total value locked across decentralized finance declined during the quarter.<\/p>\n\n\n\n

However, several areas of the digital asset industry continued to expand. Prediction markets reached a record $43.2 billion in trading volume during Q2, representing an almost eighteenfold increase compared with the same period last year.<\/p>\n\n\n\n

Tokenized real world assets also continued their rapid growth, rising more than 50% this year to nearly $33 billion.<\/p>\n\n\n\n

Meanwhile, crypto related equities outperformed the broader digital asset market, with the Bitwise Crypto Innovators 30 Index gaining 30.6%.<\/p>\n\n\n\n

The report also highlighted the growing importance of stablecoins, noting they processed 2.3 times more transaction value than Visa while collectively holding more US Treasury securities than countries including Norway, India, Brazil, and Saudi Arabia.<\/p>\n\n\n\n

Revenue generation within the crypto ecosystem has also become increasingly concentrated, with Hyperliquid, PancakeSwap, and Aave each generating roughly $900 million over the past year.<\/p>\n\n\n\n

Crypto Has Grown Far Beyond the 2022 Bear Market<\/strong><\/p>\n\n\n\n

Comparing today\u2019s market with the previous bear cycle, Bitwise found that industry fundamentals have strengthened considerably despite similar price levels.<\/p>\n\n\n\n

Ethereum now processes roughly thirteen times more transactions than it did at the equivalent stage of the 2022 cycle. Total value locked across decentralized finance is more than 60% higher, while stablecoin assets under management have doubled.<\/p>\n\n\n\n

According to Bitwise, the disconnect lies primarily in market valuations rather than adoption. Although crypto prices remain near levels associated with the last major bear market, the industry now operates at nearly twice the scale, supported by stronger infrastructure, deeper liquidity, and significantly greater participation from traditional financial institutions.#crypto#cryptonews https:\/\/coinsignals.net<\/a> https:\/\/t.me\/coinsignalpublic<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

While cryptocurrency prices extended their decline for a third straight quarter, Bitwise says the industry\u2019s underlying fundamentals continue to improve, with adoption and network activity advancing...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4616","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/4616","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/comments?post=4616"}],"version-history":[{"count":1,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/4616\/revisions"}],"predecessor-version":[{"id":4618,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/4616\/revisions\/4618"}],"wp:attachment":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/media?parent=4616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/categories?post=4616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/tags?post=4616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}