Bitwise says DeFi outperforms Bitcoin decline

• Bitwise said DeFi tokens outperformed Bitcoin during the recent market downturn.
• Its DeFi index fell 4%, compared with Bitcoin's 22% decline in June.
• Bitwise said growing institutional use could support further DeFi strength.

Bitwise said decentralised finance tokens outperformed Bitcoin (CRYPTO:BTC) during June, suggesting investors may be reassessing the DeFi sector.

Bitcoin fell about 22% in June, while Bitwise's DeFi index dropped only 4%, despite DeFi tokens usually seeing larger swings.

“DeFi usually swings much harder than Bitcoin, so holding up this well is unusual, and almost no one is talking about it,” Bitwise said.

Bitwise said stronger token economics and rising institutional use are helping stabilise DeFi, with Aave (CRYPTO:AAVE) generating about US$900 million over the past year.

The firm's DeFi index is weighted 61% toward Hyperliquid (CRYPTO:HYPE), while also holding Uniswap (CRYPTO:UNI), Ondo (CRYPTO:ONDO) and Aave, although several have posted double-digit declines this year.

CryptoRank said total value locked in DeFi fell nearly 40% this year, dropping to just over US$70 billion from about US$115 billion in January.

Bitwise also expects more companies to launch stablecoins ahead of the GENIUS Act taking effect in January 2027 and said the outcome of the CLARITY Act could shape crypto market sentiment in the coming months.

At the time of reporting, Bitcoin price was $63,935.70.