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DeFi tokens outperform Bitcoin as Bitwise flags a potential re-rating

Bitwise said BTC dropped about 22% in June, while its DeFi index tracking major protocol tokens fell about 4% and expects the outperformance to continue into Q3.

Reported · Written up by our desk · Market Structure

Cointelegraph reports that Bitwise is pointing to unusual relative strength in decentralized finance tokens, saying DeFi has held up better than Bitcoin over the past month and may be undergoing a “quiet re-rating.” The firm noted that DeFi tokens are typically more volatile than Bitcoin, making the divergence stand out.

According to Bitwise, Bitcoin fell about 22% in June, while Bitwise’s index tracking tokens from major DeFi protocols declined only about 4% over the same period. Bitwise said that while DeFi historically has been sold first by risk-averse traders, the sector’s behavior is changing as traditional institutions begin using DeFi protocols.

Bitwise also cited improving token economics and a narrowing gap between usage and token value. The firm said it sees “real institutions” building on protocols including Morpho and Jupiter, and that Aave alone generated about $900 million in the past year.

The Bitwise DeFi index fund weights holdings by market capitalization, with current exposure weighted 61% toward Hyperliquid (HYPE), which has gained more than 160% so far this year. Cointelegraph added that total value locked in DeFi has fallen nearly 40% through June, dropping to just over $70 billion from roughly $115 billion in January, citing CryptoRank.

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