Crack-based strain sensor systems have been known for its high sensitivity, but suffer from the small fracture strain of the thin metal films employed in the sensor which results in its negligible stretchability. Herein, we fabricated a transparent (>90% at 550 nm wavelength), stretchable (up to 100%), and sensitive (gauge factor (GF) of 30 at 100% strain) strain gauge by depositing an encapsulated crack-induced Ag nanowire (AgNW) network on a hydroxylated poly(dimethylsiloxane) (PDMS) film. Stretching the encapsulated AgNWs/PDMS resulted in the formation of a percolation network of nanowire ligaments with abundant percolation paths. The encapsulating polymer was designed to adhere strongly to both the AgNW and PDMS. The improved adhesion ensured the resistance of the crack-induced network of AgNWs varied reversibly, stably, and sensitively when stretched and released, at strains of up to 100%. The developed sensor successfully detected human motions when applied to the skin.