TL;DR
- The CIO of Bitwise Asset Management, Matt Hougan, said the DeFi sector could play a central role in emerging from the bear market in 2026.
- Hougan noted that DeFi tokens were designed as governance tokens without revenue rights, in response to the regulatory framework applied by the SEC.
- Michael Saylor, Executive Chairman of Strategy, stated that the market is going through a “crypto winter” and that the current cycle would be milder and shorter than previous ones.
The CIO of Bitwise Asset Management, Matt Hougan, said the decentralized finance (DeFi) sector could lead the way out of the crypto bear market in 2026. In a memo to clients, he noted that bear markets often overshadow meaningful progress and that several decentralized protocols are posting consistent operational metrics.
Hougan pointed out that Uniswap records trading volume on its decentralized exchange that frequently exceeds that of Coinbase. He also highlighted that Aave generates more than $100 million in annual revenue. According to the executive, these platforms operate as businesses with active users and revenue generation.
DeFi Market Obstacles and Potential Solutions
The executive argued that one of the main challenges facing DeFi tokens has been the design of their tokenomics. Many were structured as governance tokens without direct rights to protocol revenue. That architecture reflected the regulatory environment in place at the time of their launch, when the U.S. Securities and Exchange Commission applied the Howey test to determine whether an asset qualified as a security.
In that context, Hougan referenced the “Aave Will Win” proposal introduced by Aave Labs. The plan calls for 100% of revenue from Aave-branded products—including the website, a mobile app, the Aave Card, and institutional services—to be directed to the DAO treasury controlled by DeFi token holders. In exchange, Aave Labs would receive $25 million in stablecoins, 75,000 AAVE tokens, and up to $17.5 million in milestone-based grants, in a package totaling nearly $50 million. The initiative includes the development of Aave V4 and the transfer of intellectual property to the DAO, while a new foundation would oversee the brand.
A Shorter, Milder Crypto Winter
The executive also pointed to recent investments by BlackRock in DeFi protocol tokens such as Uniswap and by Apollo Global Management in Morpho.
In addition, Michael Saylor, co-founder and Executive Chairman of Strategy, stated that the market is experiencing a “crypto winter.” Saylor said the current cycle would be milder and shorter than previous ones and cited stronger banking system support, capital inflows, and technological advances as factors shaping the current environment
