Author: Matt Hougan, Bitwise CIO
Compiled by: Saoirse, Foresight News
The crypto market is finally showing signs of bottoming out. Since July 1st, Bitcoin has risen 9%, while the Nasdaq 100 index has fallen 6% over the same period. Capital inflows into crypto ETFs have turned positive from negative, and market sentiment continues to warm. Although it's still too early to declare the market fully stable, these positive signals have prompted many to ask about the direction of the subsequent market trend.
Last Friday, an investment advisor asked me: "If the market has indeed bottomed, what assets will lead the next cryptocurrency bull market?"
Typically, during a crypto winter, this question is difficult to answer. The main theme of a new bull market often only becomes clear once the rally is over.
But this time, I believe the answer is already in front of us: The core narrative of the next cryptocurrency bull market will be the integration of on-chain finance and traditional finance.
In other words, the market's focal points will revolve around stablecoins, asset tokenization, 24/7 trading, instant settlement, and the growth of institutional-grade decentralized finance (DeFi) to a multi-trillion dollar scale. Blockchain will disrupt the existing financial system, much like how the internet reshaped the media and retail industries in the early 2000s. I expect this could be the largest crypto cycle ever, for two key reasons: First, this cycle is driven by real application value and revenue, not just market hype. Second, this cycle's target market is far larger than previous ones – aiming at the global financial markets, not confined to the crypto industry itself.
Some might think these trends are self-evident: asset tokenization will inevitably lead the next bull market, stablecoin market cap will eventually break into trillions, and major Wall Street institutions will inevitably migrate on-chain. After all, crypto infrastructure holds many inherent advantages over the traditional financial system: 24/7 trading is far more convenient than limited trading hours; instant settlement is superior to T+1 settlement; global interoperability surpasses geographical restrictions. I'm not alone in holding this view; the SEC Chairman, the CEO of the world's largest asset manager, and the CEO of the world's largest bank have all expressed similar sentiments.
However, even though the trend seems clear, the vast majority of investors have not yet positioned their assets for this future. Many still wonder if the crypto industry is already "done." Within this gap in perception lies a huge investment opportunity.
So, how should we position ourselves for the new bull market? We can focus on two representative entities driving this integration from different directions: Hyperliquid (token HYPE) and Robinhood (stock code HOOD).
Breaking Out from the Crypto Industry
Hyperliquid (HYPE) is a Layer 1 blockchain (similar to Ethereum, Solana), natively designed to build a perpetual derivatives market primarily for crypto assets. Initially, investors used the Hyperliquid platform to speculate on crypto assets like Bitcoin and Ethereum.
But thanks to its excellent technical experience – ease of use, instant settlement, 24/7 trading – the platform rapidly expanded its business scope. Today, nearly half of the trading volume on Hyperliquid comes from traditional assets like oil, silver, and the S&P 500 index. The platform continues to expand into spot commodities, prediction markets, and options, simultaneously posing competitive pressure on exchanges like CME, Nasdaq, ICE, Kalshi, and Coinbase.
Hyperliquid's rapid growth has put pressure on its competitors. The CME even sued the U.S. Commodity Futures Trading Commission (CFTC) in an attempt to prevent the regulator from accepting perpetual futures products pioneered by Hyperliquid.
Even amidst the crypto winter, the HYPE token has gained 146% year-to-date. The growth data is substantiated: the cumulative total revenue of the Hyperliquid platform surpassed $1 billion in June, with annual revenue projected to reach $800 million. The platform allocates 99% of its revenue to repurchase its native token, HYPE, on the open market, continuously reducing the circulating supply. In my view, even if HYPE's price doubles again, its valuation would still be within a reasonable range.
Cutting In from Traditional Finance
Robinhood is approaching this industry integration from the side of traditional finance.
Robinhood itself is a traditional securities brokerage, competing with firms like Charles Schwab for retail and professional investors. It has long been far more open to crypto assets than its peers, being the first major brokerage to launch direct cryptocurrency trading.
Moreover, Robinhood fully endorses the "industry integration" thesis I've outlined. CEO Vlad Tenev stated that asset tokenization "will eventually reshape the entire financial system" and that the crypto industry and traditional finance have long been "separate systems, but they will eventually fully integrate." He predicts the line between the two will ultimately disappear completely.
On July 1st, Robinhood doubled down on this trend by launching its self-developed Layer 2 blockchain, Robinhood Chain. This public chain is open to users in 120 countries (excluding the U.S. for now), allowing them to trade tokenized stocks 24/7, 365 days a year. The chain is also compatible with major DeFi protocols: users can swap assets on Uniswap, lend/borrow assets on Morpho, or stake assets as margin to trade perpetual contracts on Lighter. In just two weeks since launch, assets under custody on Robinhood Chain surpassed $300 million, processing 3.6 million transactions daily.
This part is worth reading carefully: At the beginning of this month, Robinhood, purely through a technical launch, deployed a suite of financial services in 120 countries where users can buy, sell, trade on margin, and use leverage on tokenized stocks in real-time, non-stop, and a significant number of users are already doing so.
Skeptics might point out that much of the early on-chain trading volume is concentrated in meme coins, not stocks, which is true. But tokenized stock trading already has meaningful volume, a real user base exists, and I expect both types of trading to grow.
One thing I'm certain of: Robinhood's major competitors are closely watching this project and starting to think: Do we need to follow suit? Do we need to build a Schwab Chain, a UBS Chain, a Bank of America Chain? The trading activity Robinhood has generated at launch is something no institution can ignore.
The Two Types of Investment Standouts
I believe the new bull market will be large enough to lift most assets in the sector. I am long-term bullish on major crypto assets like Bitcoin, Ethereum, Solana, and crypto-related public companies.
But two types of investments will have particularly outstanding upside potential.
1. The Hyperliquid Category: Native Crypto Financial Applications with Real Revenue and Robust Tokenomics
Hyperliquid's core advantage over other crypto applications is its stable, real revenue and well-designed token mechanism (99% of revenue used to buy back and burn HYPE). Many investors have seen numerous crypto apps with massive users and trading volume but whose token prices remain depressed; Hyperliquid's model directly addresses what these investors are looking for.
Long-term, I believe many emerging crypto projects will emulate HYPE's token model, creating a new generation of promising token investment opportunities. Simultaneously, I'm watching mature projects that have already achieved scale and are actively tying token value to platform usage. For example, Uniswap and Aave are massive platforms that are rapidly optimizing their tokenomics; Morpho is also moving in the same direction.
2. The Robinhood Category: Mature Traditional Enterprises Building Businesses on Crypto Infrastructure
Industry disruption reshapes market share. The adoption of stablecoins, asset tokenization, and blockchain trading infrastructure represents the most significant technological shift in financial markets in the past fifty years, and this massive change is quietly underway.
To find the winners, focus on companies already conducting crypto business at scale, not those merely at the proof-of-concept stage. Proof-of-concept pilots are cheap and generate headlines but rarely accumulate meaningful expertise. The industry insights Robinhood gains from operating a live chain in 120 countries far exceed what any small pilot project could achieve.
The companies I continue to watch include Coinbase, Figure, BlackRock; I'm also keeping an eye on Visa, Stripe, and even JPMorgan Chase. Of course, there are other players, but these companies are genuinely and deeply committed to this transformation.
Capturing the Mega-Trend of Industry Integration
There has long been a consensus in the crypto industry: the ultimate sign of blockchain's success is when the technology becomes "invisible" – when blockchain is deeply embedded into the underlying architecture of the financial system, and users don't even notice its presence when using services.
I firmly believe this vision will become a reality when the next bull market arrives and traditional finance and crypto become inseparable. Investors should position themselves for this trend in advance.
Note: Sometimes, judging a company's crypto strategy requires looking at its actions, not its public statements.
