Cryptocurrency markets concluded 2025 with a stark paradox: while asset prices declined, underlying network usage and fundamental metrics surged to unprecedented levels. According to Bitwise's latest Crypto Market Review, this divergence mirrors historical inflection points that have often preceded significant market recoveries.
Ethereum (ETH) exemplified this disconnect. In Q4 2025, ETH's price fell by 29%, yet the Ethereum network simultaneously achieved all-time highs in transaction volume. This pattern is reminiscent of Q1 2023, where similar conditions—declining prices alongside strengthening fundamentals—preceded a two-year bull market. Matt Hougan, Chief Investment Officer at Bitwise, noted that markets often bottom when participants lose interest just as adoption quietly accelerates.
The report highlights broader industry strength despite weak sentiment. Crypto equities fell 20% in 2025, yet industry revenues grew at triple the rate of any other sector. Stablecoin markets crossed a significant milestone, with total market capitalization exceeding $300 billion in October 2025. Daily average stablecoin transaction volume reached $3.1 trillion, according to an Arkham Research report from the same period.
The TRON (TRX) network demonstrated the usage-price gap vividly. It ended 2025 with over $81 billion in stablecoin supply, 99% of which was Tether (USDT). Messari data shows average daily USDT transfer volume on TRON hit $23.8 billion in Q4, with the network processing approximately $6-7 trillion in stablecoin transactions annually. TRON commanded 65% of global retail USDT transfers under $1,000 and achieved a record $1.2 billion in network revenue in Q3 2025, even as TRX price consolidated around $0.28 for much of the year.
Decentralized finance (DeFi) continued to outpace centralized venues. Data from August 2025 showed daily DEX volume at $12.8 billion, compared to $3.5 billion for Coinbase. Uniswap, commanding a 55% DEX market share, processes between $1-2 billion daily across supported chains. Uniswap v4 reached $1 billion in Total Value Locked (TVL) within 177 days of launch and generated over $985 million in fees year-to-date through October 2025. In response, Coinbase integrated DEX trading directly into its app, routing orders through aggregators like 0x and 1inch to access Uniswap liquidity.
Hougan's thesis for a potential 2026 rally hinges on several structural factors: roughly 30% of the ETH supply being locked in staking, fee burns reducing issuance, and Layer 2 expansion sustaining network activity. While the timing of a price convergence with fundamentals remains uncertain, the report suggests that when adoption accelerates while valuations compress, the gap eventually closes—a dynamic that 2026 will determine.
