Bitwise Says DeFi Tokens Outperformed Bitcoin in June as Market Quietly Re-Rates Sector

Decentralized finance (DeFi) tokens have shown unusual resilience against Bitcoin over the past month, which Bitwise said may indicate the market is “quietly re-rating” the sector. According to Cointelegraph, Bitcoin fell about 22% in June, while Bitwise’s index tracking tokens from major DeFi protocols declined only 4% over the same period, based on a Bitwise report released Thursday. Bitwise said DeFi typically swings more sharply than Bitcoin, making the relative stability notable. The firm attributed the shift to growing use of DeFi protocols by traditional institutions, which it said has helped stabilize the broader DeFi ecosystem. Bitwise added that token economics are improving, the gap between protocol usage and token value is narrowing, and institutions are building on projects such as Morpho and Jupiter. It also cited Aave as generating about $900 million in the past year and said it expects DeFi’s outperformance to continue in Q3.

Bitwise said its DeFi index fund is weighted by market capitalization and is currently weighted 61% toward Hyperliquid (HYPE), the token tied to the crypto perpetuals exchange of the same name, which has gained more than 160% so far this year. The index also includes Uniswap (UNI), Ondo (ONDO), and Aave (AAVE), among others, which Bitwise noted have fallen by double-digit percentages year to date. Separately, CryptoRank reported June 24 that total value locked in DeFi has fallen nearly 40% so far this year through June, dropping to just over $70 billion from roughly $115 billion in January. CryptoRank attributed the decline to a major correction in early October following a crypto market peak when Bitcoin reached more than $126,000, while adding that the current drawdown is smaller than during the 2022 bear market. Bitwise also flagged upcoming market catalysts, including expectations that large firms will announce stablecoin projects ahead of the GENIUS Act taking effect in January 2027, and said the next three months could be “make-or-break” for the CLARITY Act under Senate negotiation, with differing market implications depending on whether it passes.