Bitwise CIO Says Blockchain Transactions Could Surge 10x to 100x

Bitwise Chief Investment Officer Matt Hougan said investors may be significantly underestimating future blockchain transaction activity as tokenized markets expand and AI agents begin trading on behalf of users. In a note outlining what he called three key mistakes crypto investors are making, Hougan argued tokenized stock transaction volumes could grow tenfold without much difficulty, and potentially climb 50x to 100x over time.

Round-the-Clock Trading Could Reshape Volume

Hougan pointed to the shift from traditional trading hours, 9:30 a.m. to 4 p.m. ET on weekdays, to potential 24/7 tokenized trading, expanding available trading hours from 33 to 168 per week. He noted AI agents executing trades automatically could further boost activity, though more hours wouldn’t necessarily translate into proportional volume increases.

Crypto Platforms Undervalued for Broader Market Potential

Hougan argued investors continue to value crypto applications based on today’s crypto-only markets. Using Uniswap as an example, he said tokenization could expand its addressable market well beyond crypto into stocks, bonds, and real estate, noting global stock and bond markets total $150 trillion and $350 trillion respectively, compared to roughly $2 trillion for all of crypto combined.

Hougan also suggested crypto-native companies remain undervalued relative to traditional finance entrants. He cited Tether and Circle’s combined 88% share of the stablecoin market versus PayPal’s 1%, along with Coinbase’s strong position in crypto custody, while acknowledging firms like BlackRock still dominate areas like bitcoin ETFs.