Bitwise: Crypto Market Declines for Three Consecutive Quarters, Predicts Record Highs for Market and Tokenized Assets

Bitwise has released its Q3 2026 Crypto Market Review, noting that the Bitwise 10 Large Cap Crypto Index fell by 15.4% in Q2, with eight constituent assets declining. Spot Bitcoin ETF outflows reached record levels, while on-chain activity, trading volume, and DeFi assets all decreased, leading to an increased correlation between the crypto market and stocks. During the same period, the prediction market trading volume reached $43.2 billion, nearly 18 times year-on-year growth; tokenized real-world assets grew by 50.3% this year to $32.89 billion; the Bitwise Crypto Innovators 30 Index rose by 30.6%; and the settlement scale of stablecoins was 2.3 times that of Visa, with holdings of U.S. Treasury bonds exceeding those of most countries. Bitwise pointed out that this marks the third consecutive quarter of negative returns, the longest since 2022, but compared to the bear market bottom of 2022, Ethereum trading activity has increased by about 13 times, the value locked in DeFi has grown by over 60%, and the assets under management in stablecoins have roughly doubled.