Crypto Extends Losing Streak to Three Straight Quarters in Q2, Longest Since 2022: Bitwise

The cryptocurrency market recorded a third straight quarterly decline in the second quarter, marking its longest losing streak since 2022, according to Bitwise.

The asset manager said its Large Cap Crypto Index dropped 15.4% during the quarter, as eight of the 10 assets tracked by the benchmark finished in negative territory. Spot Bitcoin exchange-traded funds (ETFs) also saw record quarterly net outflows, reflecting sustained weakness in digital asset markets.

Despite the weak market performance, Bitwise said several areas of the digital asset industry continued to gain momentum. Trading on prediction markets reached an all-time high of $43.2 billion, while the value of tokenized real-world assets climbed 50.3% since the start of the year to $32.89 billion. Stablecoins also continued to see wider adoption, with settlement volumes reaching 2.3 times the level processed by Visa.

The firm added that network fundamentals continued to strengthen despite the prolonged market downturn. Ethereum transaction activity has risen roughly 13-fold, decentralized finance (DeFi) total value locked has grown by more than 60%, and stablecoin assets under management (AUM) have approximately doubled from their 2022 bear-market low.

Source: Bitwise