Crypto Industry Revenue Drops 23% Amid Market Downturn
Crypto industry revenue dropped to $47 billion in the first half of 2026, marking a 23% decline from the same period last year. According to data from venture firm 1kx, this downturn was largely driven by weaker asset prices and trading activity.
The finance segment, which includes centralized exchanges, derivatives businesses, and market makers, remained the largest revenue source but saw its revenue fall by approximately $5.2 billion compared to the first half of 2025. Coinbase reported a 28% quarter-over-quarter decline in total crypto market volumes during Q1, while spot volumes fell 37%. The company's own total revenue dropped 21% during the quarter.
Onchain decentralized finance revenue also fell 32%, reducing sector revenue by approximately $1.8 billion compared with H1 2025. Exchange-traded funds and fund-management businesses generated about $1.1 billion less revenue, largely due to lower asset prices reducing management-fee bases.
Despite the decline in crypto revenue, Bitwise chief investment officer Matt Hougan believes that DeFi protocols generating revenue could see a huge rise in value. Hougan cited Hyperliquid, Uniswap, and Aave as examples of projects allocating a sizable part of their revenue to buybacks and token burns.