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Cryptocurrency markets concluded 2025 with an intriguing contradiction: while prices fell, usage metrics soared to unprecedented levels.
Recent research from Bitwise indicates that ETH plummeted 29% in Q4 2025, despite Ethereum transactions reaching new heights. The CIO of the asset management firm, Matt Hougan, remarked that this disconnection has been observed previously during significant turning points. Markets frequently hit their lows when participants lose interest just as adoption steadily increases.
The newest Bitwise Crypto Market Review has been released—and it’s the most crucial one we’ve ever issued.
Why? Because it reveals a tension in crypto markets that has historically indicated a bear-market bottom (refer to Q1 2023).
Highlights: During Q4 2025…
– ETH’s price decreased by 29% ……— Bitwise (@BitwiseInvest) January 21, 2026
The disparity is remarkable. Crypto equities dropped 20% in 2025, while industry revenues expanded at three times the rate of any other sector. Bitwise’s Q1 2025 review recorded a 45% decline in Ethereum’s price, alongside a 30.14% increase in transaction volume and the tokenization of real-world assets reaching all-time highs.
Stablecoin Movements Indicate a Different Narrative
The stablecoin market surpassed $300 billion in October 2025. Daily average transaction volume reached $3.1 trillion, according to an October 2025 report from Arkham Research.
TRON illustrates the disconnect between usage and price. The network concluded 2025 with over $81 billion in stablecoin supply, with USDT making up 99% of that total. Data from Messari revealed that average daily USDT transfer volume soared to $23.8 billion by Q4. TRON facilitated around $6-7 trillion in stablecoin transactions annually, capturing 65% of global retail USDT transfers under $1,000.
Network revenue reflects the same trend. TRON reported $1.2 billion in revenue for Q3 2025, marking an all-time high. Nonetheless, TRX spent a significant portion of 2025 trading around $0.28.
DeFi Surpassing Centralized Platforms
Decentralized exchange volume has consistently exceeded that of centralized competitors. Data from CoinDesk in August 2025 indicated daily DEX volume at $12.8 billion compared to Coinbase’s $3.5 billion. Uniswap alone processes between $1-2 billion daily across supported chains, holding a 55% share of the DEX market.
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Uniswap v4 reached a total value locked (TVL) of $1 billion within just 177 days of its launch. The protocol generated over $985 million in fees year-to-date through October 2025. In response, Coinbase integrated DEX trading directly into its application, routing orders through aggregators like 0x and 1inch to tap into Uniswap liquidity.
The Q1 2023 Comparison
Bitwise’s analysis draws a straight comparison to Q1 2023, when similar circumstances preceded a two-year bull market. That quarter experienced a 139% increase in blockchain revenues quarter-over-quarter, while Ethereum transactions achieved all-time highs.
The current situation reflects that period: declining prices, improving fundamentals, and capital slowly accumulating through stablecoin channels.
Current Market Overview
ETH is presently trading at $2,954.29, consolidating near its 200-day EMA around $3,200-$3,300. The asset is currently 39% below its all-time high of $4,946.
Source: TradingView
Hougan’s thesis is based on three criteria for a potential rally in 2026, with one already met. The structural argument relies on staking locking approximately 30% of the ETH supply, fee burns curbing issuance, and Layer 2 expansion maintaining network activity.
For traders assessing the data against the price trends, the key issue is timing. Strong fundamentals without corresponding price movements can persist for several quarters. However, when adoption rates accelerate while valuations decrease, the gap eventually narrows. The direction of that convergence will be determined in 2026.
The post Crypto Fundamentals Hit Records in Q4 2025 as Prices Lagged appeared first on Cryptonews.
