Bitwise’s Q2 2026 crypto market evaluation exhibits its 10 Massive Cap Crypto Index dropped 15.4% final quarter, the third straight quarter within the purple and the longest such stretch since 2022.
Nevertheless, the identical report argued that at the same time as costs fell, the crypto sector, together with stablecoins, tokenized property, and prediction markets, has been strengthening.
Crypto Costs Down, However Fundamentals Are Enhancing
In keeping with Bitwise, eight of the index’s 10 constituents completed Q2 within the purple, with the worst performer within the basket being Cardano (ADA), which slipped practically 40% in Q2 and is down greater than 56% 12 months so far. Ethereum and XRP misplaced 24.66% and 20.79% of their values, respectively, whereas Solana’s dip was extra modest as compared at 10.87%, though YTD it registered a extra important 40.61% plunge.
Bitcoin itself simply suffered its worst June in 4 years after falling beneath $60,000 and was about 49% off its October 2025 all-time excessive of over $126,000 on the time of writing, stretching the downturn to about 9 months.
However there have been two property within the Massive Cap Crypto Index that bucked the downward development: Hyperliquid (HYPE) and Stellar Lumens (XLM), with the previous going up 79% and the latter over 10%. Nevertheless, year-to-date XLM dumped 6.71% whereas HYPE nonetheless stayed inexperienced, surging by practically 158%.
A separate report from CryptoQuant indicated that about 40% of altcoins are buying and selling close to their all-time lows, a share that climbed towards 45% when BTC broke beneath the aforementioned $60,000.
Per the Bitwise market evaluation, on-chain exercise, buying and selling quantity, and the whole worth locked (TVL) in DeFi additionally slipped. But it surely was not all doom and gloom, as prediction market volumes reached a file $43.2 billion throughout the quarter, which is nearly 18 occasions increased than the 12 months earlier than.
In the meantime, tokenized real-world property have gone up greater than 50% to this point this 12 months to almost $33 billion, and crypto-focused equities have additionally outperformed the broader digital asset market, with the Bitwise Crypto Innovators 30 Index gaining 30.6%.
The asset supervisor additionally famous that stablecoins settled 2.3 occasions extra worth than Visa and collectively maintain extra US Treasuries than the likes of Norway, India, Brazil, and Saudi Arabia. Additional, it identified that income era amongst crypto purposes has turn into extra concentrated, with Hyperliquid, PancakeSwap, and Aave every producing roughly $900 million over the previous 12 months.
A Market Twice the Measurement It Was on the Final Backside
When Bitwise in contrast present exercise ranges to the identical level within the 2022 cycle, the distinction stood out away from the value charts. For example, Ethereum transaction counts ran about 13 occasions increased, and DeFi TVL sits greater than 60% above the extent from that interval. Moreover, stablecoin property beneath administration have doubled.
In keeping with the report, solely costs have did not hold tempo with the growing utilization and infrastructure, with the market now valuing crypto at ranges related to the final bear market, although the business is working at virtually twice the size it had reached then, and there’s better liquidity and clearer participation from conventional finance companies.
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