Crypto markets have struggled in latest months, with bitcoin falling greater than 50% from its late-2025 peak after a pointy June selloff pushed by persistent exchange-traded fund (ETF) outflows, elevated rates of interest and weaker threat urge for food.
Ether (ETH) and most main altcoins have underperformed bitcoin throughout the downturn, though a handful of sectors, together with decentralized finance (DeFi) and tokenization, have proven relative resilience.
Whereas crypto adoption is increasing throughout stablecoins, tokenized real-world belongings, onchain credit score and DeFi, the financial institution argued that utilization alone doesn’t drive token worth. As a substitute, long-term winners will convert exercise into sustainable money movement or lasting financial demand.
Cantor recognized Hyperliquid because the clearest instance of fee-driven token economics by means of HYPE buybacks and burns, whereas bitcoin stays the benchmark financial asset and Ethereum the dominant collateral layer for onchain finance.
Solana, Sui, XRP and Zcash every have differentiated strengths, the report stated, however nonetheless must show they’ll translate ecosystem progress into sturdy token demand.
The financial institution additionally highlighted digital asset treasury corporations as an missed funding theme, arguing the strongest corporations are evolving past passive crypto holders into lively operators that generate yield, construct infrastructure and supply institutional entry to digital belongings.
It initiated protection of digital asset treasury corporations Ahead Industries (FWDI) and Cypherpunk Applied sciences (CYPH) with chubby rankings and value targets of $7.90 and $0.90, respectively.