Crypto Market Prepares for Growth Amid $400 Billion Decline: 10x Research

The crypto market recently lost nearly $400 billion in total market cap, with investor sentiment hitting fear levels. Despite this, 10x Research suggests optimism as the market prepares for its next growth phase.

Foundations for a New DeFi Era

On-chain metrics indicate a potential DeFi expansion, despite stagnant market trends.
The GENIUS Act is law, and the Market Structure bill is expected to pass soon.
Ethereum-based stablecoin issuance surged by $48 billion, outperforming Tron's $15.8 billion growth.
This capital buildup could signify early positioning for a future bull run.
In Q3 2025, the global DeFi market cap increased by over 40% QoQ.
Total value locked (TVL) in DeFi protocols reached approximately $135.28 billion, up 40% year-on-year.

Deleveraging Signals a Market Reset

Open Interest dropped by 11.32% over seven days, indicating a deleveraging phase in the derivatives market.
This reduction in leveraged positions decreases systemic risk, historically signaling market recovery.
OI declines of 8% to 19% often precede major rebounds, viewed positively by entities like JPMorgan.