The market capitalization of DAT companies peaked last July, when the crypto sector as a whole reached $4 trillion in market value, only to hit a trough in November after global trade fears sparked a record $19 billion liquidation of crypto positions.
DATs have been unable to stage a full recovery so far in 2026 as the crypto market has remained in the doldrums.
Many DAT companies last year traded at a premium to their crypto holdings because investors believed they could use their access to equity and debt funding to purchase more tokens.
Starting late last year, the companies' aggregate market value relative to the net asset value of their crypto holdings - a metric known as mNAV - fell below 1, meaning the companies were trading at a discount to their holdings.
That's a major problem, because most DATs depend on their shares trading above their net asset value in order to attract new investors. Strategy's mNAV fell below 1 for the first time late last month.
The aggregate weekly trading volume in DAT shares peaked in August last year, according to data from blockchain data provider Artemis Terminal, but has seesawed since. Weekly trading volume hit a low in February, after bitcoin and other cryptocurrencies sold off on the news Warsh would be nominated for Fed chair.
Analysts believe Warsh will push to shrink the Fed's balance sheet, a headwind for risk assets like cryptocurrencies as such a move would reduce financial system liquidity.
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