Bitwise: The Q2 encrypted market recorded negative returns for the third consecutive quarter, predicting nearly 18 times more market transactions than the same

On 10 July, Bitwise issued the encrypted market review report for the third quarter of 2026. The report shows that the Big 10 market value encryption index fell by 15.4 per cent in the second quarter, with 8 of the 10 component shares falling; that the spot bitcoin ETF recorded the worst quarterly outflows; that chain activity, trade volume and DeFi assets all declined; and that the encryption market increased in relation to equities, with negative returns recorded for the third consecutive quarter, with the longest decline since 2022. At the same time, however, the report points to a number of bright spots: market transactions are projected at $43.2 billion, nearly 18 times the same level of growth; monetization of RWA has grown by 50.3 to $32.89 billion this year; the Bitwise encryption innovator 30 index has increased by 30.6 per cent; stable currency has settled 2.3 times as much as Visa and most countries with more than their United States debt; and Hyperliquid, PancakeSwap and Aave have each generated about $900 million in revenues over the past year. Bitwise states that trading activity in the Taifa increased by about 13 times compared to the bottom of the bear market in 2022, that DeFi locked up by more than 60 per cent, and that the stable AUM roughly doubled, except for prices that were not kept up. Prices reflect bear market valuations, but the industry is already twice the size of the bottom of the previous cycle — more liquid, more basic, and Wall Street is in the chain。