Bitwise CIO Sees Crypto Valuations Doubling on Token Revenue
Matt Hougan said investors have not priced in revenue-linked token buybacks and burns, a shift he expects to spread across DeFi in 12 to 24 months.
- On Wednesday, Bitwise Chief Investment Officer Matt Hougan argued that crypto valuations outside Bitcoin could rise sharply as protocols increasingly link revenue to native tokens, writing that "we could see valuations double or more."
- Hougan attributed this shift to a more permissive U.S. regulatory environment, allowing projects to implement revenue-sharing features previously avoided due to securities-law concerns, with adoption expected over the next 12 to 24 months.
- Hyperliquid routed more than $1.16 billion in trading fees into HYPE purchases, while Aave DAO's program acquired more than 205,000 AAVE, demonstrating how protocols link revenue to token value.
- Hougan acknowledged that token holders lack legal claims to cash flow and governance can alter tokenomics, while demand depends on trading volumes, meaning weaker activity could reduce capital for future purchases.
- Uniswap approved the "UNIfication" overhaul to fund UNI burns, and Solana validators are considering SIMD 0553, which would replace flat signature fees with a resource-based charge that is burned.
13 Articles
13 Articles
Cointelegraph
The New York LedgerBitwise Says Protocol Revenue Could Reprice Crypto
Hyperliquid, Uniswap and Aave are among protocols using fees to create demand for their native tokens.
Can revenue double crypto valuations by implementing repurchases in decentralized protocols and networks? - The Cryptocurrency Post
The industry debates whether adopting actual cash flows will transform digital assets. Matt Hougan suggests that integrating traditional financial metrics could radically boost asset valuation metrics, shifting the sector’s evaluation. A recent assessment in the official State of Crypto report highlights this financial metamorphosis. Historically, protocols generated intense economic activity without returning direct profits to holders. Today, t…
Hyperliquid has burned $1.3 billion of HYPE by routing 99% of its fees into buybacks
In an August 12 memo, Matt Hougan, chief investment officer at asset manager Bitwise, said most crypto tokens other than Bitcoin are undervalued. Investors are not aware of how much revenue protocols now pay back to holders. The clearest example is Hyperliquid retiring $1.3 billion of its HYPE token, he said. If the trend continues, the market “could see valuations double or more,” Hougan added. Hougan says tokens now trade on revenue For years,…
Outside of Bitcoin, investors are increasingly looking at protocol revenue, and some projects are already returning income to token holders through buybacks and burns. This was stated by Bitwise CIO Matt Hougan. Hougan reiterated the main historical criticism of the sector: networks could attract users and generate...
Bitwise CIO: Hyperliquid Busts The Myth That Crypto Doesn’t Generate Revenue
Bitwise CIO Matt Hougan explains why many people believe crypto doesn’t create revenue. He used Hyperliquid as proof that crypto is becoming a revenue-driven market. Bitwise CIO Matt Hougan has recently released a myth-busting memo arguing against claims that cryptocurrencies don’t generate revenue. He also highlighted that the same narrative is the reason why they don’t reflect their utility. Hougan cited Hyperliquid (HYPE) as a key example tha…
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