Crypto valuations could double as protocols link revenue to tokens: Bitwise CIO
Crypto assets outside Bitcoin may be entering a revenue-driven phase where protocol fees support token buybacks and burns, potentially lifting valuations, according to Bitwise CIO Matt Hougan. He argues investors have not fully priced in this shift, leaving some assets undervalued. Examples include Hyperliquid, Uniswap, Aave, Pump.fun, and Lighter, where fees are used to repurchase or permanently remove tokens from circulation. Hougan expects more DeFi apps and layer-1 networks to adopt similar mechanisms over the next 12–24 months. Hyperliquid has directed most of its revenue to HYPE buybacks and burns; Aave has used revenue for AAVE buybacks; and Uniswap has approved fee activation tied to UNI burns. Hougan says these models give investors clearer valuation anchors, though tokenomics can still change and token holders lack legal cash-flow claims like shareholders. He links the trend partly to a more permissive U.S. regulatory environment.
