Crypto investment giant Bitwise has revealed that certain segments of the digital asset ecosystem are witnessing “raging bull markets,” even as broader sentiment in the asset class remains subdued. This insight comes from the firm’s latest Q1 2025 market report, authored by Chief Investment Officer MATT HOUGAN.
Hougan described the first quarter as “frustrating” but emphasized that it was still “historically positive.” He highlighted key areas of growth, including surging stablecoin adoption, record-breaking Bitcoin futures trading volume, and the parabolic rise of tokenized real-world assets (RWAs).
“What caught my eye is that, despite the pullback in prices, parts of the crypto market are experiencing raging bull markets. For instance: Stablecoins AUM (assets under management) surged to an all-time high of over $218 billion, up 13.50% quarter-over-quarter. Transaction volume also surged 30.14%. Tokenized real-world assets went parabolic in Q1, growing 37.07% quarter-over-quarter to a new all-time high. Regulated Bitcoin futures trading volume and open interest also hit all-time highs, suggesting institutional interest in crypto as a macro trading asset is growing,” Hougan noted.
He added, “As we move into Q2, I would expect these and related areas to lead the market higher.”
Bitwise’s data underscores the explosive growth of RWAs in recent years, with 2025 accelerating this trend. The tokenization of private credit and US Treasuries has been a significant driver of this momentum. Notably, Ondo Finance has emerged as a key player, rivaling traditional finance giants like BLACKROCK in the tokenization of US Treasuries and outpacing firms such as Franklin Templeton and WisdomTree.
The report also highlights a broader macroeconomic shift, with central banks globally signaling a pivot towards looser monetary policies and an expansion of M2 money supply. Historically, such conditions have been favorable for risk assets, particularly digital assets.
For further details, refer to Bitwise’s full Q1 2025 report. Sources: Bitwise.