DeFi tokens held up far better than Bitcoin last month, declining just 4 percent while Bitcoin fell 22 percent, according to crypto index fund maker Bitwise. The divergence marks an unusual shift in a sector that historically swings harder than Bitcoin during downturns.
“DeFi usually swings much harder than Bitcoin, so holding up this well is unusual, and almost no one is talking about it,” Bitwise said in its analysis of June 2026 performance.
The outperformance comes despite a steep year-to-date decline in DeFi assets. Total value locked in DeFi protocols fell to just over $70 billion in June from roughly $115 billion in January, a decline of nearly 40 percent. DeFi tokens tracked by Bitwise, including Hyperliquid (HYPE), Uniswap (UNI), Ondo (ONDO), and Aave (AAVE), have each fallen double-digit percentages since January, even as the sector as a whole outpaced Bitcoin’s June losses.
Bitwise attributes the relative resilience to shifting market dynamics. “We think DeFi is quietly re-rating. Token economics are improving, the gap between usage and token value is closing, and real institutions are building on names like Morpho and Jupiter, with Aave alone generating ~$900 million in the past year,” the firm said.
Institutional participation in DeFi protocols has begun to stabilize the ecosystem, historically prone to sharp sell-offs when risk-averse traders exit during market stress. Bitwise’s DeFi index fund weights assets by market capitalization, with Hyperliquid comprising 61 percent of the index. Hyperliquid, the native token of a crypto perpetuals exchange, has gained 160 percent year-to-date.
Bitwise expects the trend to continue. “We expect DeFi’s outperformance to keep playing out in Q3, the kind of shift the market tends to notice late,” the firm said.
The June performance represents a smaller decline than prior bear markets. The 2026 downturn has not approached the severity of the 2022 crypto crash, and stablecoin supply has remained steady despite the broader selloff, according to data tracked by CryptoRank.
Regulatory developments may also influence DeFi momentum. The GENIUS Act, a US stablecoin regulation bill enacted last year, takes effect in January 2027. The CLARITY Act, a crypto market structure bill under Senate review, faces low passage likelihood before the November elections.
Bitwise offered a conditional outlook tied to regulatory outcomes. “If it passes, we believe it likely marks this bear market’s bottom. If it fails, expect volatility initially, then a clearing of uncertainty as the industry keeps building under a pro-crypto SEC and CFTC,” the firm said.
