The cryptocurrency markets have faced significant challenges in recent months, with Bitcoin experiencing a dramatic decline of over 50% from its late-2025 peak. This downturn has been particularly pronounced following a sharp selloff in June, which was influenced by a combination of factors including persistent outflows from exchange-traded funds (ETFs), elevated interest rates, and a weakened appetite for risk among investors.
In this volatile climate, Ether (ETH) along with many major altcoins have lagged behind Bitcoin, struggling to maintain performance. However, some sectors within the crypto landscape, particularly decentralized finance (DeFi) and tokenization, have exhibited a degree of resilience, managing to hold up better than the broader market.
Despite the growing adoption of various crypto-related technologies—such as stablecoins, tokenized real-world assets, on-chain credit, and DeFi—the underlying bank analysis argues that mere usage does not inherently drive the value of tokens. The report emphasizes that successful projects in the long run will be those that are capable of transforming activity into sustainable cash flow and establishing lasting monetary demand for their tokens.
Cantor identified Hyperliquid as an exemplary model of effective fee-driven token economics. The company’s strategy involves buybacks and burns of its HYPE token, showcasing a clear path to enhance its economic viability. The report maintains that while Bitcoin continues to be viewed as the benchmark monetary asset, Ethereum remains a pivotal player as the dominant collateral layer for on-chain finance.
Additionally, the report addresses other cryptocurrencies such as Solana, Sui, XRP, and Zcash, noting that while each possesses unique advantages, they still need to demonstrate their ability to convert ecosystem growth into long-lasting demand for their tokens.
Furthermore, the bank has flagged the emergence of digital asset treasury companies as a potentially lucrative investment theme that has been largely overlooked. It highlights that the most robust firms in this space are evolving from passive crypto holders to active operators. These companies not only generate yield but also focus on building infrastructure and providing institutional access to digital assets.
In light of this, the bank has initiated coverage of digital asset treasury companies such as Forward Industries (FWDI) and Cypherpunk Technologies (CYPH), assigning them overweight ratings with respective price targets of $7.90 and $0.90. This move indicates a belief in the potential of these entities to navigate the current market challenges and capitalize on the evolving landscape of digital assets.
