The next crypto bull market could be driven by the growing convergence between blockchain-based financial infrastructure (on-chain) and traditional finance (TradFi), according to Bitwise CIO Matt Hougan.

In a report published late Tuesday, Hougan argued that crypto may be showing early signs of a market bottom, with Bitcoin gaining 9% since July 1 even as the NASDAQ 100 declined 6%. He pointed to improving market sentiment and exchange-traded fund (ETF) flows as signs that market conditions could be shifting.

Following the move, the Bitwise CIO stated that the next bull run would be driven by stablecoins, asset tokenization, 24/7 markets, instant settlement and the expansion of institutional interest in decentralized finance (DeFi).

“I…