Crypto markets have struggled in recent months, with bitcoin down more than 50% from its late-2025 peak following a sharp sell-off in June driven by sustained exchange-traded fund (ETF) outflows, rising interest rates and weaker risk appetite.
Ether (ETH) and most major altcoins have underperformed bitcoin during the downturn, although a handful of sectors, including decentralized finance (DeFi) and tokenization, have shown relative resilience.
While crypto adoption is expanding across stablecoins, tokenized real-world assets, onchain credit and DeFi, the bank argued that usage alone does not drive token value. Instead, long-term winners will convert activity into sustainable cash flow or lasting monetary demand.
Cantor identified Hyperliquid as the clearest example of fee-driven token economy through HYPE buybacks and burns, while bitcoin remains the benchmark monetary asset and Ethereum the dominant security layer for onchain funding.
Solana, Sui, XRP and Zcash each have different strengths, the report said, but still need to prove they can translate ecosystem growth into lasting token demand.
The bank also highlighted digital asset treasury companies as an overlooked investment theme, arguing that the strongest companies are evolving beyond passive crypto holders to active operators that generate returns, build infrastructure and provide institutional access to digital assets.
It initiated coverage on digital asset treasury companies Forward Industries (FWDI) and Cypherpunk Technologies (CYPH) with overweight ratings and price targets of $7.90 and $0.90, respectively.
