DeFi may be ‘quietly re-rating’ given outperformance against Bitcoin: Bitwise
Bitwise says DeFi tokens have outperformed Bitcoin recently, suggesting the sector may be being “quietly re-rated.” In June, Bitcoin fell about 22% while Bitwise’s DeFi index dropped only 4%, unusual because DeFi typically falls harder in risk-off markets. Bitwise argues the shift is being helped by rising institutional use, improving token economics, and a narrowing gap between protocol usage and token value. It pointed to activity around Morpho, Jupiter, and Aave, with Aave generating about $900 million in revenue over the past year. The firm expects DeFi outperformance to continue into Q3. Its index is heavily weighted to Hyperliquid, which has risen sharply this year, though many other DeFi names are down. Bitwise also highlighted stablecoin expansion and major regulatory developments: stablecoin projects may accelerate ahead of the GENIUS Act, while the CLARITY Act could be a key market catalyst if passed, or trigger more volatility if it fails.
