Hyperliquid, Robinhood could lead crypto’s next bull market as DeFi and TradFi converge

The next crypto bull market could be driven by the growing convergence between blockchain-based financial infrastructure (on-chain) and traditional finance (TradFi), according to Bitwise CIO Matt Hougan.

In a report published late Tuesday, Hougan argued that crypto may be showing early signs of a market bottom, with Bitcoin gaining 9% since July 1 even as the NASDAQ 100 declined 6%. He pointed to improving market sentiment and exchange-traded fund (ETF) flows as signs that market conditions could be shifting.

Following the move, the Bitwise CIO stated that the next bull run would be driven by stablecoins, asset tokenization, 24/7 markets, instant settlement and the expansion of institutional interest in decentralized finance (DeFi).

“I expect it will be the biggest cycle yet, for two reasons: It will both be the most real, driven by utility and revenue instead of hype. And it will be tackling a much bigger market than prior cycles (global finance, not just crypto),” Hougan wrote.

He highlighted Hyperliquid (HYPE) and Robinhood (HOOD) as two platforms approaching this convergence from opposite directions.

Hyperliquid brings traditional assets on-chain

Hougan noted that nearly half of Hyperliquid's trading volume now comes from assets such as Oil, Silver and the S&P 500. The platform is also expanding into spot commodities, prediction markets and options.

The report highlighted Hyperliquid's financial performance as a key reason for the bullish outlook. The platform reportedly surpassed $1 billion in lifetime revenue in June and is on track to generate $800 million in revenue this year.

Hyperliquid also directs 99% of its revenue toward buying HYPE tokens on the open market.

“I think the token could double in price and still be fairly valued,” Hougan stated.

Hougan added that the Hyperliquid model could eventually be replicated by other crypto applications that generate substantial revenues.

“Over time, I believe a new wave of crypto assets will copy HYPE’s tokenomics and introduce exciting ‘next-gen’ token opportunities,” he stated.

Robinhood pushes TradFi onto blockchain rails

While Hyperliquid represents the crypto-native side of the convergence, Hougan identified Robinhood as an example of a traditional financial company moving in the opposite direction.

The company recently launched Robinhood Chain, a Layer-2 blockchain designed to support tokenized financial assets.

Hougan shared that the platform allows users across 120 countries to trade tokenized stocks around the clock. It also connects with DeFi protocols, allowing users to swap assets, borrow against them and access perpetual futures.

Within two weeks of its launch, Robinhood Chain reportedly accumulated more than $300 million in deposits and processed 3.6 million transactions per day, the report states.

Hougan noted that the early activity could encourage other financial institutions to explore similar blockchain-based infrastructure.

“Every major Robinhood competitor is looking at this and asking, ‘Should we do this too?’” wrote Hougan.

Hougan highlighted that investors should focus on crypto-native financial applications with real revenues and sustainable tokenomics, as well as established financial companies actively building on blockchain rails.

HYPE is trading at $59, down 1% over the past 24 hours at the time of writing. Meanwhile, HOOD is trading at $104.48, down 1.77% as of Wednesday.