Crypto investors may be underestimating the scale of the industry’s next growth phase by relying too heavily on current market conditions, according to Bitwise CIO Matt Hougan.

Crypto apps could target a much larger asset market

In a late Tuesday report, Hougan identified three mistakes investors are making as the sector expands beyond its current boundaries.

The first argument is that investors are underestimating the markets crypto apps are designed to serve. He pointed to Uniswap as an example. The decentralized exchange was initially built to facilitate trading between crypto assets, but its potential market could expand significantly as traditional assets become tokenized.

“People think of these apps as crypto apps, just like they…