Bitwise CIO: The next bull market will be driven by nine core narratives including AiFi, revenue-generating products, Vitalik's return to Ethereum, and more

Odaily Planet Daily reports that Bitwise Chief Investment Officer Matt Hougan posted on X platform stating that cryptocurrencies are driven by narratives, and currently nine major narratives are expected to lead the next cycle.

First, revenue-driven products. The blockchain industry’s annual revenue is currently about $7 billion to $8 billion. As mainstream adoption accelerates, industry revenue will scale to hundreds of billions of dollars, and projects generating revenue will be rewarded.

Second, AiFi. AI agents will use cryptocurrencies, stablecoins, and DeFi instead of bank accounts, and their scale is hard to estimate.

Third, the decline of fiat currency. As fiat currencies depreciate, the world will shift towards hard currencies including BTC.

Fourth, institutional adoption. Institutional adoption of cryptocurrencies is a decade-long trend, with scale measured in trillions.

Fifth, regulatory progress. The benefits of active regulation have not yet been realized. The Genius Act will take effect in January 2027, and once regulation becomes clear, investment and mainstream adoption will grow exponentially.

Sixth, stablecoin supercycle. Although the management asset size of stablecoins is temporarily stagnant at $300 billion, it will grow to trillions in the future, becoming a pillar of the global payment system in the 21st century.

Seventh, tokenization. Currently, only $20 billion in assets have been tokenized, while the global stock, bond, and real estate markets total hundreds of trillions, with a market penetration rate of less than 0.1%.

Eighth, DeFi revival. With the tokenization of RWA assets and clearer regulations, the protocol token economy will expand 100 times.

Ninth, Ethereum enters the “Steve Jobs comeback moment.” Vitalik Buterin returns to the Ethereum ecosystem, analogous to Steve Jobs’ return to Apple in 1996, and Ethereum’s development will enter an explosive phase.