Bitwise CIO: DeFi Could Be Key Force in Exiting Bear Market, Saylor Says 'Bitcoin Spring is Coming'

BlockBeats News, February 18th, Bitwise Chief Investment Officer Matt Hougan stated that the decentralized finance (DeFi) sector is expected to lead the crypto market out of the current bear market cycle, with improving industry fundamentals and continuous institutional inflows.

In a client memo, Hougan pointed out that bear markets often mask industry progress, but multiple DeFi protocols now have real-world scale and revenue-generating capabilities. For example, Uniswap's decentralized trading volume often exceeds Coinbase's, and the lending protocol Aave has generated over $1 billion in annual revenue.

He emphasized that the next bull market may place more emphasis on "real users, real revenue, and real value," all of which DeFi embodies. However, due to the historical design of most DeFi tokens as governance tools without direct economic rights, token prices have not fully reflected protocol value. Aave has dropped 50% in the past year, and Uniswap has remained relatively flat over the last five years.

Hougan mentioned that a recent governance proposal from Aave Labs could be a turning point. The proposal aims to allocate all revenue from Aave's flagship product to a DAO treasury controlled by token holders and adjust the incentive structure between developers and the community. If implemented, protocol revenue will be directly linked to token value, potentially reshaping the industry's tokenomic model.
Additionally, he noted that institutions are accelerating their DeFi positions, with BlackRock investing in Uniswap tokens and Apollo Global Management investing in Aave competitor Morpho, indicating mainstream capital recognition of this track.

On the other hand, Michael Saylor stated in an interview with Fox Business that we are indeed in a "crypto winter" currently, but this cycle will be milder and shorter than before. He highlighted that compared to four years ago, the banking system has stronger support for Bitcoin, capital continues to flow in, and the technical ecosystem keeps advancing.