Hyperliquid and Robinhood Lead the Charge in Next Crypto Cycle

Bitwise Chief Investment Officer Matt Hougan believes that traditional financial markets' growing adoption of blockchain infrastructure could drive the next crypto cycle. This cycle is expected to be different from previous ones, as it will be supported by financial activity and revenue rather than speculative demand.

Hougan identifies two categories that could benefit from this transition: 'crypto native financial applications that generate substantial revenue and connect token value to platform usage' and 'established financial companies deploying products directly on blockchain networks.'

He places Hyperliquid in the first category, citing its ability to generate significant revenue through trading volume and fees. The protocol has surpassed $1 billion in cumulative revenue in June and is on track to generate around $800 million this year.

The revenue generated by Hyperliquid is directed towards purchasing HYPE tokens on the open market, addressing a recurring issue across crypto markets where applications generate trading volume without creating corresponding demand for their native tokens.

Robinhood represents the second category as it approaches the transition from the traditional finance side. The brokerage launched the public mainnet of Robinhood Chain on July 1, and has seen significant activity with over $300 million in deposits and 3.6 million daily transactions within two weeks of its launch.