Bitwise Identifies Three Crypto Trends Set to Shape the Financial Landscape

Chairman of the SEC, Paul Atkins, referred to blockchain as the foundation of future financial infrastructure. This presents unique opportunities for market participants, stated Matt Hougan, Chief Investment Officer at Bitwise.

«The most optimistic document on cryptocurrency I’ve read wasn’t authored by some random expert in the field; it was written by the chairman of the SEC,» he noted.

According to him, the regulator’s new strategy will benefit layer-one blockchains, super apps like Coinbase, and DeFi platforms. Hougan believes these sectors are poised for profit over the next five years.

The expert identified layer-one network tokens as foundational assets for a crypto portfolio. He emphasized that the initiative known as Project Crypto, aimed at migrating stocks and bonds to public blockchains, will enhance demand for:

«The ideal strategy is to purchase a basket of leading assets: Ethereum, Solana, Cardano, XRP, Avalanche, Aptos, Sui, NEAR, and so on. […] Rather than trying to predict the winners, an index approach provides exposure to all top projects,» remarked Bitwise’s investment director.

During his presentation, Atkins proposed the concept of «super apps,» which would offer a wide array of services through a single interface. Hougan stated that Coinbase and Robinhood align perfectly with this model.

«I would venture to say that one of these companies could emerge as the world’s largest financial services provider, potentially being the first in this sector to surpass a market capitalization of $1 trillion. Atkins has essentially given them a roadmap,» the expert asserted.

On July 17, Coinbase rebranded its namesake wallet to Base App. The application merged social networking, mini apps, chat, payments, and trading. Meanwhile, the Robinhood platform supports cryptocurrencies, stocks, options, ETFs, individual retirement accounts, and more.

The third trend indicates a «qualitatively» new phase in DeFi development. Despite previous regulatory challenges, Hougan believes the SEC’s new stance could trigger explosive growth for decentralized platforms.

«Uniswap, the largest spot DEX, processed $88 billion in volume in June, setting a monthly record. The total value locked in lending protocols like Aave also hit a peak of $56 billion. Derivatives trading platforms such as Hyperliquid are showing impressive results. With clear rules in place, these figures could increase by ten, fifty, or even a hundred times,» he noted.

Hougan recalled critics who argue that most DeFi tokens lack a «clear economic connection to the protocols.»

«For instance, UNI from Uniswap is a ‘governance token’ that allows holders to influence the protocol’s development but does not grant a share of the platform’s trading fees,» the expert emphasized.

In his view, this is a legacy of stringent regulation. The SEC’s new approach could enhance the value of such assets.

For context, on August 6, the Commission clarified the status of liquid staking. According to the regulator’s ruling, this sector is no longer subject to securities laws.