- Bitwise CIO says DeFi and traditional finance convergence will drive the next crypto cycle.
- Hougan highlights Hyperliquid and Robinhood as leading examples of that shift.
- He sees tokenization, stablecoins, and institutional DeFi as the next major growth drivers.
Crypto markets may finally be finding a floor, according to Bitwise CIO Matt Hougan, who points to Hyperliquid and Robinhood as the clearest signal of what comes next.
Hougan’s view comes as crypto shows signs of resilience despite weakness in broader markets. Bitcoin is up 9% since July 1, even as the Nasdaq 100 fell 6% over that stretch. ETF flows have turned positive, and sentiment is improving, though he stops short of calling an all-clear. That gap prompted a question from an advisor last week: if the bottom is in, what leads to the next bull run?
Hougan’s answer centers on one idea: the convergence of on-chain and traditional finance. He expects the next cycle to be defined by:
- Stablecoins
- Tokenization
- 24/7 trading
- Instant settlement
- Institutional DeFi scaling into the trillions
He compares the shift to how the internet reshaped media and retail in the early 2000s.
Crypto Side: Hyperliquid
Hyperliquid began as a Layer 1 blockchain built for crypto perpetual futures trading. It has since expanded well beyond that, with nearly half of its trading volume now coming from conventional assets like oil, silver, and the S&P 500.
Its rise has rattled competitors, with CME currently suing the CFTC to slow the agency’s embrace of the perpetual futures contracts Hyperliquid pioneered. HYPE is up 146% this year, backed by real revenue growth, according to Hougan. The platform directs 99% of its roughly $800 million in projected annual revenue toward buying back HYPE tokens, shrinking supply.
TradFi Side: Robinhood
Robinhood is approaching the same convergence from the opposite direction. CEO Vlad Tenev has said tokenization is “going to eat the entire financial ecosystem,” predicting crypto and traditional finance will eventually merge entirely.
On July 1, Robinhood launched Robinhood Chain, a Layer 2 blockchain letting users in 120 countries, not yet the US, trade tokenized stocks around the clock. The chain integrates with Uniswap, Morpho, and Lighter. Within two weeks:
- It was handling 3.6 million transactions daily
- It already held upwards of $300 million in deposits
Critics note much of the early activity involves memecoins rather than stocks.
Where Hougan Sees the Winners
Hougan argues investors should focus on two groups positioned to benefit from the convergence of traditional and on-chain finance.
The first includes crypto-native protocols that generate real revenue and have sustainable token economics, such as Hyperliquid, Uniswap, Aave, and Morpho. Rather than relying solely on speculation, these platforms are building businesses with growing cash flows and user adoption.
The second group consists of established financial companies integrating blockchain infrastructure into their products. Hougan highlights firms such as Robinhood, Coinbase, BlackRock, Visa, Stripe, and JPMorgan, arguing they are helping bring tokenization, stablecoins, and on-chain settlement into mainstream finance.
His broader view is that crypto succeeds most when it becomes invisible, fully absorbed into finance’s underlying infrastructure.
Related: HYPE Price Analysis: Liquidation Heatmaps Signal Rising Downside Risk
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